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      Question

      For a company, Bank Overdrafts and Outstanding Expenses

      will be termed as
      A Current Liabilities Correct Answer Incorrect Answer
      B Long term liabilities Correct Answer Incorrect Answer
      C Current Assets Correct Answer Incorrect Answer
      D Other Long-term liabilities Correct Answer Incorrect Answer
      E Borrowings Correct Answer Incorrect Answer

      Solution

      Bank overdraft is a short-term working capital borrowing and outstanding expenses are expenses accrued and not paid by the company. In both cases the company owes money to someone else in a period less than a years and it is therefore current liability for the company.

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