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    Question

    A bank overdraft is classified on balance sheet

    as:
    A Non-current liability always Correct Answer Incorrect Answer
    B Current liability (if repayable on demand) Correct Answer Incorrect Answer
    C Current asset Correct Answer Incorrect Answer
    D Equity instrument Correct Answer Incorrect Answer
    E Contingent asset Correct Answer Incorrect Answer

    Solution

    Overdrafts repayable on demand are bank borrowings under current liabilities.

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