Is bank over draft a current asset?

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1005387

2026-04-04 23:41

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No, a bank overdraft is not considered a current asset. Instead, it is classified as a current liability because it represents money that a company owes to the bank when it withdraws more than its account balance. Current assets are resources owned by a business that are expected to be converted into cash or used up within one year, whereas an overdraft indicates a financial obligation.

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