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 it is: Interest expense is the cost of money. Interest expense is recorded on the income statement. Let's assume you need $500,000 to buy a house. The price of borrowing that money is interest, and it is expressed as a percentage of the amount of money you obtain.
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.