Is A loan payment an expense on income statement?

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asked Jul 1, 2018 in Other-Finance by Kaith (290 points)
Is A loan payment an expense on income statement?

1 Answer

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answered Jul 1, 2018 by Dex R (4,600 points)
No. A loan payment cannot be counted as an expense on your income statement.

Your principal loan payment is a reduction in liability such as Notes Payable or Loans Payable and this is then reported on your balance sheet.

Your principal loan payment is also reported as cash outflow on the Cash Outflows statement.

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