The amount of the outstanding checks is included on the bank reconciliation as a(n):

Question

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The outstanding checks are checks that have been issued by the company but have not yet been cashed or deposited by the payee. Therefore, they are a deduction from the cash balance per bank, as they have not yet been recorded as a decrease in the bank account by the bank. The company needs to deduct the outstanding checks from the bank balance to arrive at the adjusted cash balance per bank.

The Amount of the Outstanding Checks Is Included on the Bank