MCQ
True or False
State whether the following statement is true or false with reasons:
Bank overdraft is an asset of the business.
Options
True
False
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Solution
This statement is False.
The amount withdrawn by the Current Accountholder in excess of the balance in his Current Account up to a predetermined limit decided by the bank on the basis of security offered is called Bank Overdraft. It is a temporary loan given by the bank to the Current Accountholder. It is a liability of the business.
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