Purchase Discounts Lost is a financial expense and is reported in the "other income and expense" section of the income statement.

Question

Quizplus · Accepted Answer

Purchase Discounts Lost is considered a financial expense because it represents the cost of not taking advantage of discounts offered by suppliers for early payment. It is reported in the "other income and expense" section of the income statement as it is not directly related to the primary operations of the business.

Purchase Discounts Lost Is a Financial Expense and Is Reported