Asked by Nelli Vartanian on May 13, 2024
Verified
Outstanding checks
A) Bank statement adjustment
B) Company books adjustment
C) Either
Outstanding Checks
Checks that have been issued and recorded in an entity's accounting system but have not yet been cashed or cleared by the bank.
Bank Statement Adjustment
The process of modifying the balance shown in a bank statement to match the adjusted balance in the ledger accounts, usually due to timing differences in recording transactions.
Company Books Adjustment
The process of making changes to the financial records to correct errors or update accounting information.
- Locate and deploy adjustments on bank statements and company financial records.
Verified Answer
NT
NEREYDA TERRONES QUINTANAMay 14, 2024
Final Answer :
A
Explanation :
Outstanding checks are items that have been recorded in the company's books but have not cleared the bank yet. Therefore, adjusting for outstanding checks is a bank statement adjustment.
Learning Objectives
- Locate and deploy adjustments on bank statements and company financial records.