Outstanding cheques are cheques that
A) Have been written, recorded, sent to the payees, received, and paid by the bank
B) Have been written and not yet recorded in the company books
C) Are blank cheques
D) Have been written, recorded on the company books, and sent to the payees, but have not yet been paid by the bank
E) Have been issued by the bank

Question

Quizplus · Accepted Answer

Outstanding cheques are cheques that have been issued by the company, recorded on the company books, and sent to the payees, but have not yet been paid by the bank. Option A refers to cheques that have already been paid by the bank. Option B refers to cheques that have been written but not yet recorded. Option C refers to blank cheques, which cannot be outstanding as they have not yet been issued or written. Option E is incorrect as banks do not issue cheques on behalf of companies.

Outstanding Cheques Are Cheques That