Final answer:
The three items classified as current liabilities in a company's financial statements are Bank overdraft, Tax payable, and Accrued interest charges. An allowance for receivables is a contra-asset, and share capital is an equity item, not a liability.
Step-by-step explanation:
The three items that would be included in current liabilities in a company's financial statements are: B. Bank overdraft, C. Tax payable, and E. Accrued interest charges. Let's define each term:
- Bank overdraft occurs when a company's bank account balance goes below zero, indicating that the company has spent more money than it had in the account.
- Tax payable is the amount of tax that a company is required to pay to the government, which has been incurred but not yet paid.
- Accrued interest charges are interest expenses that have been incurred but not yet paid, usually related to loans or credit extended to the company.
On the other hand:
- Allowance for receivables (A) is not a liability but a contra-asset account that represents estimated uncollectible accounts receivable.
- Share capital (D) is considered an equity item, not a liability.