Accrued Interest

Accrued interest represents interest that has accumulated on a loan or bond but has not yet been paid. This interest is typically recorded on the balance sheet as a liability for the borrower and an asset for the lender. Accrued interest is common in bonds, mortgages, and business loans, impacting cash flow management and financial reporting for both borrowers and lenders.

• Unpaid interest that has accumulated on a loan or bond.
• Recorded as a liability for borrowers and an asset for lenders.
• Common in bonds, mortgages, and other debt instruments.
• Impacts cash flow and financial reporting.