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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Gearing ratio
Hello Sir,
I wanted to confirm do we take Bank overdraft in Debt or not ? and if so why .. Because as per my understanding Bank overdraft should be included in Current liabilities.
Thanks in advance!
We do not include it (unless the question implies that the intention is to maintain in for the long-term, in which case it would be regarded as long-term debt for the purposes of the gearing ratio).
Alright! Thank you sir
You are welcome 🙂
