Accounting Multiple Choice Question – 30 May 2019

A bank overdraft…?

Select ONE answer:

1. is an asset.
2. can exist on either a deposit account or a current account.
3. means that more money has been paid out of a bank current account than has been lodged into it.
4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 3

1. A bank overdraft is a liability.
2. A bank overdraft cannot exist on a deposit account.
3. Correct
4. Not correct

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