Preinterest
Preinterest refers to a concept in finance and accounting that describes interest that has been earned but not yet received or recorded. It can also refer to interest that is due to be paid in the future but has not yet been formally recognized on a balance sheet. In essence, it represents an accrued amount of interest that exists between two accounting periods.
For example, if a company has a loan that accrues interest daily, but interest payments are only
The recognition of preinterest is important for accurate financial reporting. Accountants must ensure that all earned