Question

Which one of the following is not matched?
List I: List II

Answer 1

In most cases, interest is a deductible expense for your business. But there are some limitations and restrictions. How interest expenses depend on whether the expense is for a purchase of business property, on business debts (like credit card debt), or interest on investments. This article looks at both interest expenses and interest income and how they affect your business tax return.

The cost of debt is the return that a company provides to its debt-holders and creditors. Interest is not considered for calculating the cost of debt.