On January 8, Lee Co. borrows $100,000 cash from National Bank by signing a 90-day, 6% interest-bearing note. On April 8, Lee Co. will pay National Bank a total of $101,500. The difference between the amount paid back to National Bank of $101,500 and the amount borrowed of $100,000 (or $1,500) represents

Interest expense

Explanation:

Interest expense is the cost of using debt financing. It is the extra amount repaid together with the principal amount. Interest expense represents the cost of borrowing funds.

Interest expense is calculated as a percentage of the principal amount per period, usually a financial year. Interest expense is a non-operating cost. If it's too high, it affects profitability adversely. Interest rates are a major determinant of interest expense. Firms and households pay to attention to the interest rates before borrowing due to its direct impact on the interest expense.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3