Interest Receivable is Interest Revenue that you have not received yet, but it’s due date has passed. In layman terms. Interest Received is an Income. It is not an asset.Click to see full answer. Considering this, what is the difference between interest income and interest expense?Interest expense is an account on a business’s income statement that shows the total amount of interest owing on a loan. Interest payable is an account on a business’s income statement that show the amount of interest owing but not yet paid on a loan. is interest income an asset? Many companies have interest-bearing assets, such as loans and investments, that generate a stream of income for the company. As long as it can be reasonably expected to be paid within a year, interest receivable is generally recorded as a current asset on the balance sheet. Keeping this in view, what is an interest receivable? Interest receivable is the amount of interest that has been earned, but which has not yet been received in cash. The usual journal entry used to record this transaction is a debit to the interest receivable account and a credit to the interest income account.What account is interest income?Interest Income is the revenue earned by lending money to other entities and the term is usually found in the company’s income statement to report the interest earned on the cash held in the savings account, certificates of deposits or other investments.
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