Answer:
Yes, I agree with the statement: Bank overdrafts are reported under financing activities when preparing cash flow statements.
Step-by-step explanation:
This criterion often classifies an increase or decrease in bank overdrafts as a financing activity. Both an increase in bank overdrafts and a decrease in bank overdrafts will be represented as cash inflows and outflows from financing activities.
As an alternative, it might be considered a part of the entity's cash management, together with cash and cash equivalents.