To Which Balance Sheet Grouping Does the Item 'Bank Overdraft

question 38

Multiple Choice

To which balance sheet grouping does the item 'bank overdraft' belong?

• A) current asset
• B) noncurrent asset
• C) current liability
• D) noncurrent liability.

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Definitions:

Extraordinary Items

Events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence.

Cumulative Effect

The total impact of a change in accounting principle on the net income reported in prior periods, if that change had been applied retrospectively.

Accounting Principle

A fundamental guideline or rule that underpins the financial reporting and accounting practices.

Common Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by investors, including those held by institutional investors and company officers.