Which of the following is classified as a Current Liability (CL)?

A bank overdraft is classified as a current liability because it represents an amount that a business owes to the bank that is due within the short term, typically within one year. Current liabilities are obligations that a company needs to settle quickly, and a bank overdraft fits this definition as it arises when a company withdraws more money than is available in its bank account, effectively creating a short-term obligation to the bank.

In contrast, patents, trucks, and furniture are classified as non-current assets. Patents are intangible assets that provide a long-term benefit, while trucks and furniture are tangible assets that are used over a longer period in the operations of a business. Assets are items owned by the company that provide future economic benefits, and since these items do not need to be paid off or settled in the short term like current liabilities, they are categorized differently.