On the balance sheet, Interest Receivable is reported as a fixed asset.

Question

Quizplus · Accepted Answer

Interest Receivable is reported as a current asset, not a fixed asset. Fixed assets include things such as property, equipment, and buildings that are expected to have a long-term useful life and are not intended for sale in the near future. Interest Receivable represents the amount of interest earned but not yet received on a company's outstanding loans or investments, and is expected to be collected within one year, making it a current asset.

On the Balance Sheet, Interest Receivable Is Reported as a Fixed