Accounting Dictionary - Letter I
represents an entity's future cash receipts of interest (interest accrued but not received). For example, an entity lends money to a borrower and in return the borrower will repay the loan principal and interest. Interest accrued but not received from the borrower is recorded in the interest receivable account until paid. Interest receivable account is shown in the assets section of the balance sheet. Interest receivable can be short-term (current) or long-term (non-current).
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