Bank Overdrafts, If Material, Should

question 32

Multiple Choice

Bank overdrafts, if material, should

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

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Definitions:

Post Hoc

A logical fallacy that implies a cause and effect relationship simply because one event follows another in time.

Fallacy

A misleading or unsound argument or reasoning pattern that is incorrect logically but appears to be correct.

Causally Related

Refers to entities or events that have a cause-and-effect correlation with one another.

Causality

The relation between causes and effects, often considered fundamental to the understanding and analysis of phenomena in various fields, including philosophy and science.