Is paying off your Business loan considered as an expense?

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Is paying off your Business loan considered as an expense?

2007-10-12 12:00:31 · 3 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance

3 answers

When you make payments, some goes against the principal amount and some against interest. The interest is charged to the GL expense account called "interest expense", but the principal portion reduces the liability called "business loan."

2007-10-12 12:07:36 · answer #1 · answered by hottotrot1_usa 7 · 0⤊ 0⤋

The interest is an expense, and the thing that you bought with the borrowed money may be an expense or it may be an asset. But the principal of the loan is a liability, not an expense.

2007-10-12 19:11:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋

I would think yes....but I don't know for sure

2007-10-12 19:21:10 · answer #3 · answered by Music 7 · 0⤊ 0⤋