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Sagot :
Answer: A. The segregated account should be reported as a noncurrent asset, the regular account should be reported as a current asset, and the overdraft should be reported as a current liability.
Explanation:
The segregated account is scheduled to pay funds into a bond sinking fund which is a long term fund. The segregated account should therefore be considered a noncurrent account due to the bond sinking fund being long term.
The regular account is used for regular corporate operations which makes it current and has a positive balance which makes it an asset therefore it is best as a current asset.
The account that is overdrawn represents a liability albeit a short term one as bank overdrafts do not typically last longer than a year so this is a current liability.
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