Financing Expenses

Definition

• Expenses incurred by a business due to its financing activities. Financing expenses include the outflow cash to investors through dividends, interest from loans, costs from repurchasing stock, and other expenses from financing activities.

Related Terms and Acronyms

• Accounts Payable (AP, A/P) — Acronym,
  • Money owed by a business for goods and services received.
• Cash Flow — Definition,
  • The money an investment produces after subtracting cash expenses from income.
• Dividend — Definition,
  • Distribution of earnings to shareholders. In credit unions, it's the money paid to members for deposits, similar to the interest banks pay to their customers for deposits.
• Expense — Definition,
  • Costs incurred through a business's operations.
• Interest (IN, int) — Acronym & Abbreviation,
  • Money paid for the use of borrowed funds, usually expressed as an annual percentage.
  ➥ Bank account transaction code.
• Loan — Definition,
  • Letting another party use something of value temporarily.
• Stock — Definition,
  • A share of the ownership of a company.