Bank Overdrafts Are Considered to Be a Reduction of Cash

question 73

True/False

Bank overdrafts are considered to be a reduction of cash under IFRS, but not under U.S. GAAP.

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Definitions:

Long-Term Assets

Long-term assets, also known as non-current assets, are resources a company expects to use or hold for more than one year, such as property, plant, and equipment.

Acquisition

The process of obtaining control of another company by purchasing its stock or assets.

Disposal

The act of getting rid of something, such as selling off an asset or throwing away unusable items.

Income Tax Preparation

The process of organizing and filing income tax returns, often using specialized software or professional services.