Bank overdraft is :

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Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

Bank overdraft is :

Options:

Operating Activity

Financing Activity

Investing Activity

Cash and Cash equivalents

Correct Answer:

Financing Activity

Explanation:

The correct answer is Option (2) - Financing Activity

A bank overdraft is a financing activity in the cash flow statement. An increase in this will make inflow of cash to the company and vice-versa.