A bank overdraft would be reported as
A) a current liability.
B) part of the current asset cash account.
C) restricted funds.
D) accounts receivable.

Question

Quizplus · Accepted Answer

A bank overdraft occurs when withdrawals from a bank account exceed the available balance, giving the account a negative balance. This is considered a short-term obligation that the company needs to settle, thus it is classified as a current liability on the balance sheet.

A Bank Overdraft Would Be Reported as