Chapter 23: Q21STQ (page 1399)
Question; In the case of a bank overdraft:
- GAAP typically includes the amount in cash and cash equivalents.
- IFRS typically includes the amount in cash equivalents but not in cash.
- GAAP typically treats the overdraft as a liability, and reports the amount in the financing section of the statement of cash flows.
- IFRS typically treats the overdraft as a liability, and reports the amount in the investing section of the statement of cash flows.
Short Answer
Answer
Option (c) is the correct option.