The Interest Income account
A) usually has a credit balance.
B) is usually shown in the Current Assets section of the balance sheet.
C) is debited when the firm records the effects of a dishonored note receivable.
D) is credited when the firm accepts a note receivable from a customer.

Question

Quizplus · Accepted Answer

The Interest Income account is an income account, which means it usually has a credit balance since it represents money the company has earned. It is often found in the Revenue section of the income statement rather than the balance sheet. Options B, C, and D are not accurate statements about the Interest Income account.

The Interest Income Account