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14:31 Jan 15, 2008
English to Polish translations [PRO] Bus/Financial - Accounting
English term or phrase:book overdraft
A company that carries little or no balance in a disbursements account will often have an automatic overdraft protection agreement in place with its bank whereby short-term financing is provided to cover checks presented for payment. Such an arrangement can also serve as an effective cash management tool by minimizing the opportunity cost of carrying funds in a low-yielding bank account. At the end of an accounting period, even though automatic financing has been provided to cover and eliminate a bank overdraft in the disbursement account, the existence of outstanding checks will result in a book overdraft - a negative cash balance on the books though not at the bank itself.