Is a bank overdraft an liability?

Is a bank overdraft an liability?
Bank Overdraft as Liability by KayorsYes, a bank overdraft are classified as a current liability.What happens here is withdrawls from the bank exceed deposits. The lending institution, usually the bank, would allow an extension of credit in such a case. The company is usually expected to pay within short-term and it results in negative balance in company's bank account. That is the reason for the overdraft being classified as a current liability.