Interest Income

Home » CMA Glossary Term » Financial Statements and Reporting » Interest Income

Interest income meaning refers to the revenue earned by an entity from its interest-bearing financial assets, such as bonds, loans, or savings accounts. It represents the compensation received for lending funds or investing in interest-generating instruments. This income is typically recorded on the income statement and is a crucial component of financial performance analysis. Interest income is recognized when it is earned, regardless of when it is received.

CMA Exam Academy 16-Week Accelerator Program