A check that was outstanding on last period's bank reconciliation was not included with the canceled checks returned by the bank this period.As a result,in preparing this period's reconciliation,the amount of this check should be:
A)Added to the book balance of cash.
B)Deducted from the book balance of cash.
C)Added to the bank balance of cash.
D)Deducted from the bank balance of cash.
E)Ignored in preparing the period's bank reconciliation.

Question

Quizplus · Accepted Answer

The outstanding check should be deducted from the bank balance of cash because it has not yet cleared the bank, even though it was recorded in the books in the previous period.

A Check That Was Outstanding on Last Period's Bank Reconciliation