The interest expense is called the cost of borrowings which means a price given by the borrower to the lender for using the borrowed money. The interest expense is calculated by multiplying the interest rate with the outstanding amount. To explain: The interest expense is fairly stated or not.

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Chapter 15, Problem 15.22P

To determine

Introduction: The interest expense is called the cost of borrowings which means a price given by the borrower to the lender for using the borrowed money. The interest expense is calculated by multiplying the interest rate with the outstanding amount.

To explain: The interest expense is fairly stated or not.

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