Question

When preparing a bank reconciliation, outstanding checks are _____. deducted from the bank balance added to the bank balance deducted from the company's cash balance added to the company's cash balance

Answer 1

When preparing a bank reconciliation, outstanding checks are

deducted from the bank balance.

What are outstanding checks examples?

A check becomes outstanding when the payee doesn't cash or deposit the check. This means it doesn't clear the payor's bank account and doesn't appear on the statement at the end of the month. It is a check that has been written, but it hasn't been cashed-deposited by the bank or otherwise cleared the bank. An outstanding check can be a personal or a business check.

An outstanding check is a check payment that has been recorded by the issuing entity, but which has not yet cleared its bank account as a deduction from its cash balance.

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