indenture (plural indentures) (law) A contract which binds a person to work for another, under specified conditions, for a specified time (often as an apprentice). (law) A document, written as duplicates separated by indentations, specifying such a contract. An indentation. (Can we add an example for this sense?) Translations
What is an 'Interest Expense'. The cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. It represents interest payable on any type of borrowings â bonds, loans, convertible debt or lines of credit. It is basically calculated as the interest rate times the outstanding principal amount of the debt. Interest expense on the income statement represents interest accrued during the period covered by the financial statements, and not the amount of interest actually paid over that period.
Income Before Taxes Many companies use debt ï¬ nancing. Interest expense is paid on outstand-ing long-term loans and is a form of non-operating expense. The expense is classi ï¬ ed as a nancing expense, not an operational expense, and is therefore listed under non-operating expenses for ï¬ rms in most industries.