If a check written by a firm is not canceled by the bank, the firm should:

Question

Quizplus · Accepted Answer

If a check written by a firm is not canceled by the bank, it means that the bank has not yet deducted that check amount from the firm's account. Hence, when preparing the bank reconciliation, the firm should consider this check as outstanding and deduct it from the bank balance to arrive at the adjusted balance. This will ensure that the firm's records match with the bank's records, and any discrepancies or errors can be identified and resolved.

If a Check Written by a Firm Is Not Canceled