What Is a Purchase Finance Charge?

Financial expenses refer to expenses incurred by an enterprise to raise funds required for production and operation. Specific items are: net interest expenses (the difference between interest expenses less interest income), net exchange losses (the difference between exchange losses less exchange gains), financial institution fees, and other expenses incurred in raising production and operating funds. ^[1]

Financial expenses

(1) Interest expenses refer to enterprises

However, interest expenses incurred during the establishment of the enterprise shall be included

The financial expenses incurred by the enterprise are calculated in the "financial expenses" account and set according to the expense items

The financial expenses incurred by the enterprise are calculated in the "financial expenses" account, and detailed accounts are set up according to the expense items for detailed accounting. The financial expenses incurred by the enterprise are debited to the "financial expenses" account, and the subjects such as "bank deposits" and "withdrawn expenses" are credited; the interest income and exchange gains incurred by the enterprise are deducted from the borrower. At the end of the month, all the financial costs collected by the debit party were transferred from the lenders in the "financial cost" account to "

according to"

1. Review of interest expenses

(1) Whether the interest expenses incurred by the enterprise in the current year actually belong to the interest expenses that should be borne by the profits and losses of that year, whether the interest expenses that should be borne by the previous year or the infrastructure project are included in the profits and losses of that year.

(2) Whether the scope of interest expenditures is in compliance, pay attention to check whether the handling of various types of interest expenditures is correct. Generally speaking, the accrued interest expenses of a company's current liabilities are included in financial expenses;

1.Financial expenses--

1. Accounting treatment of interest income and expenditure. With the development of the market economy, the content of corporate interest income and expenditure accounting has been gradually extended from the original bank deposit and loan interest accounting to the interest accounting of loans between enterprises and between enterprises and competent authorities, and the forms of expression have gradually become more diverse Into.

(1) Most companies count the interest on borrowed funds among themselves as financial expenses, which is not appropriate. In accordance with tax policy, non-financial institutions provide funds to the other party and collect

Financial Expenses Account Setting and Description:

1. Financial expenses-interest income: interest income from deposits

2. Financial expenses-interest expenses: interest expenses on loans and other interest payment methods;

3. Financial costs-exchange losses: foreign currency exchange spreads

4. Financial expenses-handling fees: handling fees incurred by various banks' income and expenditure businesses