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UI Post-UTME Financial Accounting 2024 (Model questions) Question 13

Question 13

Final Accounts of a Sole Trader

In a balance sheet, bank overdraft is

  1. A.Current Asset
  2. B.Fixed asset
  3. C.Long term liability
  4. D.Current Liability
Show the answer and explanation

Answer: D (Current Liability)

Explanation

An overdraft is repayable on demand, so it is a current liability.