Bank overdrafts, if material, should be
a. reported a deduction from the current assset section
b. reported as a deduction from cash
c. netted against cash and a net cash amount reported
d. reported as a current liability

The book say D, but C doesn't compute. Is this a trick question.

beadwoman

It's not a "trick" question. It's a technicality, and apparently a rule you're supposed to know.

If you overdraft your bank account, you OWE THE BANK the money back. :-)