Non-management employees who earn their pay by the hour generally are non-exempt too, even if they earn $455 or more per week. Such employees are commonly referred to as hourly non-exempt. Update: The U.S. Department of Labor (DOL) increased the salary threshold from $455 to $913 per week ($47,476 per year).
DEFINITION of '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.
Home > Accounting Dictionary > A Terms > Accrued Expense. An accrued expense is a cost that is incurred in the current period but not paid for until the next period. In other words, its an expense that the company has benefited from but hasnt paid for or recorded yet. This is why an accrued expense is recorded as a liability at the end of a period. Its the amount of expenses owed to another company. The most common form of accruals is a monthly expense like rent or utilities that are consumed throughout the month and paid for on first of the following month. Lets take rent for example. The business benefits from the rent expense all month, but it doesnt actually pay for it until the next month.