Credit Card Account

Question asked by Duncan Mercer 7 years ago

Hi

Question raised by my business mentor - why do the credit card accounts appear under assets on the mgmt report - surely they are a liability?

Cheers Duncan

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3 Replies

Hi Duncan,

A credit card account would default as a Bank Account and would be classed as a current asset. However, I have taken a look at your account, if you owe them money, the amount would be shown in brackets which indicate a negative value and can be considered as a liability.

I hope this has been helpful!

Thanks,

Tommy

Best answer
7 years ago

Hi Tommy

Agreed on that point but any credit card should be classed as a liability on the books not an asset - you'll never (at least very rarely) be in credit on a credit card - so it should list under the liabilities surely.

Cheers Duncan

7 years ago

Hi Duncan,

Thank you for the feedback, this is a very valid point. I will forward this onto our product team to review but in the meantime, the system will show it has a negative asset which indicates as a liability.

Thanks!

Tommy

7 years ago

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