What does interest income mean on the CPA exam?
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Interest income. What a lender earns for the use of its money over time, recognized as it is earned.
Defined against ASC 310-20.
Which CPA exam sections use interest income?
Interest income appears in the FAR section of the CPA exam.
Related terms
- capital gain net income: Capital gains minus capital losses for the year, long-term and short-term combined.
- distributable net income: The ceiling on what a trust or estate may deduct for distributions and on what the beneficiary must report.
- earned income: Compensation for personal services -- wages, or net earnings from self-employment.
- gross income: All income from whatever source derived, unless the Code specifically excludes it.
- net income: What is left after every revenue and expense of the period, including tax and discontinued operations.
- net investment income: Interest, dividends, capital gains, rents, royalties and income from passive businesses, less the deductions allocable to them.