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student asked in Business & FinancePersonal Finance · 1 decade ago

Is repayment of principal on a debt included on an income statement as an expense?

For example, if I have a $6k loan, and I pay $150 of it back, and also pay $30 interest, would my expenses on the income statement include:

Principal Repayment: $150

Interest Expense: 30

2 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    No.

    The only time it's income is if you fail to pay it back at all.

  • STEVEN F
    Lv 7
    1 decade ago

    No, the principal is recorded as a reduction in the liability.

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