Under U.S. GAAP, bank overdraft should generally be reported as ________.
A) a decrease in the balance of Cash and Cash Equivalents
B) a decrease in other current assets
C) an increase in operating expenses
D) an increase in current liabilities

Question

Quizplus · Accepted Answer

Under U.S. GAAP, bank overdrafts are typically reported as an increase in current liabilities because they represent an obligation to repay the overdrawn amount.

Under US GAAP, Bank Overdraft Should Generally Be Reported as ________