Interest receivable is usually considered a current asset, but may be non-current under one exception. Current assets are any assets that will provide an economic value for or within one year. Interest receivable is an amount of interest that is owed but has not yet been paid. Usually interest receivable is expected to be paid within a year, making it a current asset. In the rarer occasion that there is no expectation of payment within one year, then it may be considered a non-current asset.
Is Interest Receivable a Current Asset? FAQs
Interest receivable is an asset account in the balance sheet that records any interest income due to a company from its debtors.
Yes, interest receivable is considered a current asset since it can typically be converted into cash within one year or less.
Current assets are any assets that will provide an economic value for or within one year.
Usually, interest receivable is expected to be paid within a year, making it a current asset.
Companies such as banks and financial institutions, loan companies, and businesses that regularly extend credit to customers may report interest receivables.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
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