The term 'finance costs' is synonymous with:
A) advances from lenders.
B) loans payable.
C) non-current liabilities.
D) interest expense.

Question

Quizplus · Accepted Answer

Finance costs refer to the interest expense incurred on loans and other borrowings, therefore the best choice is option D. Advances from lenders (A) and loans payable (B) are types of borrowings that may result in finance costs, but they are not synonymous with finance costs. Non-current liabilities (C) are a broader category that includes long-term borrowings, lease liabilities, and other long-term liabilities, but not all non-current liabilities are finance costs.

The Term 'Finance Costs' Is Synonymous With