In a direct financing lease, the lessor's primary involvement in the lease is providing financing in exchange for:_____.

Interest revenue represents how much interest a company earned during a specific time period. This is interest earnings on any investments the business has or debts it has provided to an individual or other entity. Interest revenue appears on a company's income statement, so whatever the time period is on the income statement is the same period of time that the interest revenue is calculated from.

Both interest revenue and interest receivable amounts are the amount of interest a company has earned through certain transactions, partnerships and business dealings, but there are small differences between the two that can affect a company's balance sheets. You can consider any interest income that a company has earned to be interest revenue, whether or not the business has received the income.

Comparatively, interest receivable only refers to the interest income that a company has yet to receive from the customer, client or debtor who owes it. Instead, it's the interest the business expects to receive. Most companies record its interest receivable as a current asset on its balance sheet if it expects to receive the interest payment within the year.

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