In reconciling the bank statement, the outstanding checks are deducted from the balance shown on the bank statement.

Name: In reconciling the bank statement, the outstanding checks are deducted from the balance shown on the bank statement.
Brand: Quizplus
Rating: 5.0 (52 reviews)

Question

Quizplus · Accepted Answer

This is because outstanding checks are checks that have been written but have not yet cleared the bank. Therefore, the amount of these checks needs to be deducted from the balance shown on the bank statement to arrive at the actual balance in the account.

In Reconciling the Bank Statement, the Outstanding Checks Are Deducted