Dell reported $270 million in interest expense in the notes to its 2013 income statement. In the note to its statement of cash flows,

(b) Dell reported $270 million in interest expense in the notes to its 2013 income statement. In the note to its statement of cash flows, Dell indicates that the cash portion of this expense is $279 million. What could account for the difference between interest expense and interest paid?

The difference arises from the amortization of any discounts or premiums on the debt.

The difference arises because the amount of interest paid is based on prevailing interest rates that change frequently.

The difference arises because the amount of interest expense is based on prevailing interest rates that change frequently.

There is never any difference between interest expense and interest paid.

Mark 1.00 out of 1.00

The correct answer is: The difference arises from the amortization of any discounts or premiums on the debt.

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