To which balance sheet grouping does the item 'bank overdraft' belong?
A) current asset
B) noncurrent asset
C) current liability
D) noncurrent liability.

Question

Quizplus · Accepted Answer

Bank overdraft is a current liability because it is a short-term borrowing arrangement where a company has drawn more money than it has in its bank account, resulting in a negative balance. It is expected to be repaid within a short period, making it a current liability.

To Which Balance Sheet Grouping Does the Item 'Bank Overdraft