Asked by DeAndra Kelly on May 21, 2024
Verified
When preparing a bank reconciliation, outstanding checks would be
A) added to the balance per bank statement
B) deducted from the balance per company records
C) deducted from the balance per bank statement
D) added to the balance per company records
Outstanding Checks
Checks that have been written and recorded in the payer's accounting system but have not yet been cleared or cashed by the recipient.
Bank Statement
A summary of financial transactions that have occurred over a given period on a bank account held by a person or business with a financial institution.
- Pinpoint and correct discrepancies in the recording of monetary transactions and in conducting bank reconciliations.
Verified Answer
DB
Domonique ByersMay 27, 2024
Final Answer :
C
Explanation :
Outstanding checks are checks that have been written by the company but have not yet been cleared by the bank. Therefore, they need to be deducted from the balance per bank statement to reconcile the company's records with the bank's records.
Learning Objectives
- Pinpoint and correct discrepancies in the recording of monetary transactions and in conducting bank reconciliations.