Bank overdrafts would be reported as a liability.Hence, Option (a) is correct.
Overdrawing a current account is achievable with a bank overdraft. This implies that even if the account does not have enough money, if an outgoing payment is more than the amount of money remained in the account, the payment can still be made owing to the bank overdraft. Therefore, a bank overdraft is a type of credit.
Different definitions of "liability" may be found in the fields of law, insurance, politics, and finance. A liability in finance and accounting is a debt owing by a person or an organization. Financial liabilities, like a leasing agreement, can also constitute enforceable commitments to make future financial payments.
Learn more about Overdraft here:
https://brainly.com/question/23920816
#SPJ4
The question was incomplete. Check below the full question.
Which of the following would be reported as a liability?
a. demand deposits
b. bank overdrafts
c. travel advances
d. certificates of deposit
