Bank Overdrafts, If Material, Should Be

question 109

Multiple Choice

Bank overdrafts, if material, should be

• A) reported as a deduction from the current asset section.
• B) reported as a deduction from cash.
• C) netted against cash and a net cash amount reported.
• D) reported as a current liability.

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Definitions:

In Stock

Indicates that items are available for purchase and can be delivered or picked up immediately, as they are present in the inventory.

Close

The final step in a sales process where the salesperson secures the agreement of the customer to purchase.

Modified T-Account Close

A closing technique where the salesperson lists the pros and cons of purchasing a product in a T-account format to help the prospect make a decision.

T-Account

A T-account is a visual representation of a ledger account that depicts a business transaction's effect on a company's accounts.