If a check written by a firm is not canceled by the bank and returned with the month's bank statement,the firm should

Question

Quizplus · Accepted Answer

If a check written by a firm is not canceled by the bank and returned with the month's bank statement, it means that the bank has not yet processed the check. Therefore, the firm should consider this check as outstanding when preparing the bank reconciliation. This will ensure that the firm's records are up to date and accurate. Option B is not necessary as the bank will eventually process the check. Option C is incorrect as the firm's records should be adjusted to reflect the bank's records, not the other way around. Option D is also incorrect as an adjustment is needed in this case.

If a Check Written by a Firm Is Not Canceled