Bank Overdrafts Are Generally Reported as

question 84

Multiple Choice

Bank overdrafts are generally reported as

• A) a current asset.
• B) a contra account.
• C) a non-current asset.
• D) a current liability.

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Definitions:

Inventory Column

A column in financial spreadsheets or ledgers that records the quantities and values of products a company has in stock.

Cash Payments Journal

A journal used in accounting to record all payments made by a company, including expenses and purchases.

Accounts Payable

Liabilities or amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Double Entry System

An accounting method where every transaction is recorded in at least two accounts, ensuring the accounting equation remains balanced.