How would outstanding checks be dealt with in a bank reconciliation?
A) deducted from bank statement balance
B) deducted from company's book balance
C) added to bank statement balance
D) added to the company's book balance

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been written but have not yet cleared the bank. Therefore, they need to be deducted from the bank statement balance to reflect the true balance available to the company.

How Would Outstanding Checks Be Dealt with in a Bank