Why is a bank overdraft classified as a current liability despite many businesses using the overdraft for
Question:
Why is a bank overdraft classified as a current liability despite many businesses using the overdraft for more than one year?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (2 reviews)
If a business uses an overdraft for a more than a one ...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Elliott Merck, senior vice-president and credit evaluator for Gift Card Capital Inc. (GCC), faced a critical decision. He had been presented with large credit requests from two mid-size, multi-unit...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following letter was sent to the SEC and the FASB by leaders of the business community. Dear Sirs: The FASB has been struggling with accounting for derivatives and hedging for many years. The...
-
AASB 102 prohibits the use of the LIFO method. What is the argument against the use of LIFO?
-
The circular disk of radius a shown in Fig. 4-7 (P4.28) has uniform charge density s across its surface. (a) Obtain an expression for the electric potential V at a point P (0, 0, z) on the...
-
Canvas.com received a bank statement from Buttermilk Bank indicating a bank balance of $7,600. Based on Canvas.coms check stubs, the ending checkbook balance was $8,231. Your task is to prepare a...
-
Design Data sold a piece of machinery to HHB Drafting Company. However, after HHB had taken possession of the machine, it discovered damage and revoked the contract. The court found that the...
-
A consumer is in equilibrium at point A in the accompanying figure. The price of good X is $5.a. What is the price of good Y?b. What is the consumer??s income?c. At point A, how many units of good X...
-
Explain why not all relationships go through every stage in Knapp's Relational Model. Give an example.
-
From the following trial balance and additional information construct an income statement for the year ended 31 March 2016 and a balance sheet as at that date. Additional information: (a) Inventory...
-
From the following trial balance produce an income statement for the year ended 31 March 2020 and a balance sheet as at that date. Trial balance as at 31 March 2020 Sales Purchases Opening inventory...
-
Will tax revenue necessarily rise if tax rates are lowered? Explain your answer.
-
Examine the four sets of emergent strategy theories. Of the four theories, which is likely to help address conflict in a change management process? Explain your answer.
-
Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of 9 percent. Both bonds have 18 years to maturity, make semiannual payments, and have a YTM of 6 percent. If interest rates suddenly...
-
After reading the case, please provide your opinion about whether the ChevronDefense should continue to apply today. Are there circumstances under which the rule should not apply? ...
-
Look for and post an article regarding the challenges faced with Integrated Supply Chains. Choose one issue from the article to discuss and troubleshoot. How did the company mitigate and solve this...
-
If you own a home worth $185,000 and your unpaid mortgage is $150,000. What is your equity in the home?
-
In general, how could each of the following parameters influence your choice for an organizational structure? Explain your answers in as much depth as possible. a. The project cost b. The project...
-
suppose a nickel-contaminated soil 15 cm deep contained 800 mg/kg Ni, Vegetation was planted to remove the nickel by phytoremediation. The above-ground plant parts average 1% Ni on a dry-weight bas...
-
Copy out the following trading account filling in the necessary missing figures: Sales Less Returns inwards Net turnover Less Cost of goods sold Opening inventory Add Purchases Add Carriage inwards...
-
From the following data, construct a trading account for the year ended 31 December 2010. Carriage inwards Sales Purchases Opening inventory Closing inventory 332 15,432 9,807 2,341 3,298
-
Below is a trial balance for A Bantick. Construct a statement of comprehensive income for the period ending 30 November 2011, and a statement of financial position as at that date. Inventory as at 30...
-
For a company named BRAND Burger targeting people from different nationalities by serving them burgers with taste and recipies from their country, going to be opened in BC Canada Make SWOT analysis....
-
An investor is bullish on the euro and believes it will increase against the Japanese Yen. The investor purchases a currency call option on the euro with a strike price (exchange rate) of 125/. When...
-
You are to select an existing hospitality business . This business will be used for all assessments in this subject . Choose a business you are familiar with , it could be where you work or a...
Study smarter with the SolutionInn App