Bank overdraft as a short term source of fund is
-
A current liability
- An overdrawn account
- Grade to a newly opened account
- Repayable after more than a year
The correct answer is: A
Explanation
An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be "overdrawn
Current liabilities are a company's debts or obligations that are due within one year or within a normal operating cycle, example is overdraft