The Expense of Using Borrowed Money for a Period of Time

question 64

Multiple Choice

The expense of using borrowed money for a period of time, is referred to as:

• A)net income.
• B)revenue.
• C)liability.
• D)interest.

---

Definitions:

Issuing Stock

The process by which a company distributes its shares to investors, thereby raising capital in exchange for ownership interests in the company.

Corporation

A legal entity that is separate from its owners and shareholders, which can own assets, incur liabilities, and conduct business.

Government Entity

An organization operated by the government.

Authoritative Body

An organization or institution that sets standards or rules in a specific field, exerting control or influence.