Question

Out of the following, identify the item that is not shown in the Note to Accounts on Finance Costs:

Options

• Interest paid on term loan

• Bank Deposit

• Interest paid on Bank Overdraft

• Discount on Issue of Debentures Written off.

Answer 1

Bank Deposit

Explanation:

Bank Deposit is an asset for the company (classified under “Cash and Cash Equivalents” or “Other Bank Balances” on the Balance Sheet), and any interest earned from it is treated as other income, not a finance expense.