An adjusting entry is NOT required for
A) outstanding cheques. Replace? The term was deleted from the chapter and its Glossary
B) EFT collections.
C) NSF cheques.
D) bank service charges.

Question

Quizplus · Accepted Answer

Outstanding cheques are cheques that have been written by a company but have not yet been cashed or cleared by the bank. Since they represent amounts that have already been recorded in the company's cash account, no adjusting entry is required for them in the company's accounting records.

An Adjusting Entry Is NOT Required for