ECONOMICS

Detailed explanation-1: -Yes, bank overdraft is considered as a current liability that is payable within the current accounting period. Also read: What Is a Fixed Asset.

Detailed explanation-2: -Bank overdraft is considered a liability because it is an excess amount of money that is withdrawn from an account as compared to the amount deposited and that results in a negative account balance. The amount taken as overdraft needs to be repaid by the business, hence, it is considered as a liability.

Detailed explanation-3: -Bank overdraft is current liability or non-current liability? It is current liability as it is payable within the time period of less than 1 year generally. Bank Overdraft is a current liability as it is expected to be paid within 12 months.

Detailed explanation-4: -Is a bank overdraft an asset or a liability? Whether the bank overdraft is an asset or a liability always depends on the perspective: for the bank granting the bank overdraft, it is an asset; for the company using the bank overdraft, it is a liability.