What is the interest rate?

The receivable is the amount of interest received by companies from any of its interest investment. These payments are those that have not yet been made, but are for society in the future. For the purposes of accounting, the receivable with interest is considered as an asset in the balance sheet and is determined in opposition to due interest, which is the amount of money owed by the company in interest payments. It is important that this amount is realized by the company in its balance sheet, because the timing of interest payments may actually differ from the moment the amount is represented in the balance sheet.

companies usually provide loans and accept them as part of business. These companies must deal with interest payments that the borrower carries out as a compensation for the receipt of the creditor's burden with the risk that repayment will not be carried out. Interest is usually calculated as a percentage of the principal owed on the loan. Interest is a concept of accounting that measures the amount of interest received by companies. Unlike this is considered a veilFor any interest owed to creditors, also known as interest. If the amount of interest owed by the company continues to grow without paying the debtor, this amount will become accumulated.

As an example of how this concept works, imagine that the company provides a loan to another entity. The loan director is $ 10,000 in the US (USD), which is to be returned per year at an interest rate of 10 percent. This means that the money owed to the debtor's interest is 10 percent $ 10,000 or $ 1,000. Until the interest is paid off, $ 1,000 may be included as an asset in the balance sheet of interest as an interest of interest.

Whenever the debtor is repaid some part of $ 1,000, the balance she has to be changed to represent it. Imagine that the debtor pays $ 500 out of interest. This $ 500 is then written off from the interest receivables account and is credited to the interest income account. In this way isThe equalization principle that dictates all accounting is achieved.