If a company has Other receivables on its balance sheet it most likely will show ________ on its income statement.
A)Interest revenue
B)Interest expense
C)Interest receivable
D)Interest payable

Question

Quizplus · Accepted Answer

Other receivables are typically non-interest bearing and include items such as advances to employees or prepaid expenses. Therefore, the company would not show interest expense, interest receivable, or interest payable on its income statement. However, if the other receivables generate interest income, this would be shown on the income statement as interest revenue.

If a Company Has Other Receivables on Its Balance Sheet