The interest that has been earned but not yet paid or received.
The accumulated interest on a financial obligation that has been earned but not yet paid or received. This typically occurs with loans, bonds, or other forms of debt. Accrued interest represents the amount that is owed or will be earned over a certain period but has not been settled. It is important for small business owners to understand and account for accrued interest as it impacts the overall cost of borrowing or the income generated from investments. Accurate tracking and management of accrued interest help businesses maintain transparency in financial reporting and make informed decisions regarding debt repayment or investment strategies.