This might seem like a paradox because interest expense is an operating expense, but I think the problem lies in how it is calculated. To me, it seems like a much bigger problem that, if interest expense is an operating expense, it should be reported as such. There are a multitude of reasons why it isn’t reported as such. This is the issue that I am looking at.
Most people don’t think that the interest expense should be included in the operating expenses in a business. They think it should be included in some special way that distinguishes it from other operating expenses. The problem with this is that many businesses pay for interest expense with some of their revenues. If interest expense is included as an operating expense, then that would mean that the business would have to pay for interest expense with its own revenues.
Some people have argued that this is unfair. But if we’re trying to figure out if something is operating for profit in our business, then we want to make sure that it’s operating in an environment that will generate the highest revenues. So it’s more fair to include interest expense as an operating expense.
It’s interesting to see this in line with other examples. For example, this site has an excellent summary of what a “social-network” is, and it’s pretty clear that it’s a social network for other people. But it’s also interesting to have the idea that there are social-network-based web sites that are actually more social than they are. We’ve seen examples of sites that work well with a social network.
I think the reason why this is a good idea is because interest expense is not an operating expense. Its an income-generating expense. In other words, if someone has a site and they do not receive any revenue from it, then they are not going to generate any revenue from it. It is a “loss leader.” I believe interest expense is an operating expense because it is a “loss leader.
When an interest expense is a loss leader, then its likely that it is not going to be used to generate revenue. If its someone who does not have the social network to work together and it is not likely that they will be able to work together to generate revenue, it is probably not going to be used to generate revenue.
Interest expense as an expense line is a loss leader. Even a small interest expense can be used to generate revenue. If interest expense is a loss leader, then it probably can be used to generate revenue.
Interest expense is like a debt line. Interest expense is like a loan. It’s a loss leader because it can be used to generate revenue. The issue is that Interest expense is one of those expenses that can be used to generate revenue, but not to derive a return on investment. Interest expense is like an investment fee. It can be used to generate revenue, but a return on the investment has to come from somewhere else.
Interest expense can be used to generate revenue. It’s just not a good use of the expense. It’s a loan. Its a loss leader because it can be used to generate revenue. As a loan, interest expenditure can be used to generate revenue, but that revenue can come from anywhere.
Some of our colleagues have suggested that interest expense can be used to generate revenue from an investment. But that’s not true. It can just be a cost of doing business.