Your company writes a check for $857. Which of the following describes how this transaction should be accounted for?

Question

Quizplus · Accepted Answer

When writing a check, the recorded cash balance should be reduced by the amount of the check ($857), which is why it is deducted from the recorded cash balance. The bank will also deduct the same amount ($857) from the checking account balance. Therefore, the correct choice is B, as it accurately reflects how the transaction should be accounted for.

Your Company Writes a Check for $857