i had question with the  cash and cash equivalents

i have coem across 2-3 question.. cannot give it here .. i have to search in passmaster .. cannot afford to do it now.. those u have given exam recently might remember..

Questions is: when u see a bank over draft in the question.

 a) And u r told to find cash and cach equivalents... u deduct them from available  cash and cash equivalents???

b) and what u do if u are told to find the total current assets

i came across questions were they have deducted for the cash and cash equvilaents ..the overdraft amt

and for the total current assets they have taken it as current liabilities .. can any body help me in this

As per GAAP, bank overdraft is a negative cash balance and would be reported as current liabilties

However, f the organization has multiple accounts in the same bank and one of the accounts has an overdraft, the organization may offset this amount against the positive balances in the other accounts as long as the overall net balance of the aggregated accounts is positive.

This right of offset is not available if the accounts are in different banks.