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What is a cash overdraft?

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Question added by Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)
Date Posted: 2016/04/28
Haris Ahmed Qureshi
by Haris Ahmed Qureshi , Sales Executive (Industrial Kitchen & Laundry Equipment Division) , CHBIB Trading Co. Ltd.

A cash account with a credit balance. For example, $50 in cash was deposited, but the check was written for $100. The difference is reported as a liability on the balance sheet.

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