A check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period.In preparing the bank reconciliation for this period,the amount of this check should be:
A)added to the bank balance of cash.
B)ignored in preparing this period's bank reconciliation.
C)deducted from the bank balance of cash.
D)deducted from the company's balance of cash.

Question

Quizplus · Accepted Answer

All outstanding checks are deducted from the bank balance.Whether the check was written during the current period or written in a prior period is irrelevant.There is still a timing difference;the check is recorded on the company's books but has not yet been processed by the bank.

A Check That Was Outstanding on Last Period's Bank Reconciliation