Bank overdrafts are generally reported as
A) a current asset.
B) a contra account.
C) a non-current asset.
D) a current liability.

Question

Quizplus · Accepted Answer

Bank overdrafts are viewed as a negative cash balance in a bank account, indicating that the account holder has withdrawn more money than is currently available. As a result, the overdraft is seen as a current liability on the company's balance sheet.

Bank Overdrafts Are Generally Reported as