If a Company Had an Overdraft at the Bank, How

question 90

Multiple Choice

If a company had an overdraft at the bank, how would it be classified on the cash flow statement?

• A)As a cash flow from operations.
• B)As a cash flow from investing activities.
• C)As a cash flow from financing activities.
• D)As a cash and cash equivalent.

---

Definitions:

Investment Center

A business unit or division that is responsible for its own revenues, expenses, and investments in assets.

Return On Investment

A metric for assessing how well an investment is doing by comparing the net profit to the investment's initial cost.

Direct Expenses

Expenses directly linked to the manufacturing of particular products or services.

Sales

Sales involve the exchange of a product or service for money or its equivalent, constituting a fundamental activity of commercial enterprises to generate revenue.