O-LevelAccountingThe fundamentals of accounting7707/11 · Oct/Nov 2018 · Q41 Mark
The bank agreed to allow Dan an overdraft with a limit of $500. What did this mean?
Asum of $500 would be transferred into Dan's account by the bank.
BAll cheques issued by Dan would be paid by the bank.
CCheques issued by Dan would be paid by the bank provided the account was not overdrawn by more than $500.
DOnly cheques issued by Dan for less than $500 would be paid by the bank if there was not enough money in the account.
✓ Correct answer
A: sum of $500 would be transferred into Dan's account by the bank.
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