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Bank overdraft as a short term source of fund is

Bank overdraft as a short term source of fund is
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A A current liability
  • B An overdrawn account
  • C Grade to a newly opened account
  • D Repayable after more than a year
Correct Answer: Option 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An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero.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

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