Outstanding checks refer to checks that have been:
A) Held as blank checks.
B) Written, recorded, sent to payees, and received and paid by the bank.
C) Issued by the bank.
D) Written and not yet recorded in the company books.
E) Written, recorded on the company books, sent to the payee, but not yet paid by the bank.

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been recorded in the company's books but have not yet been cleared or paid by the bank. Option E is the only option that matches this definition. Options A and C are incorrect because the checks have not been written by the company and issued by the bank. Option B is incorrect because these checks have already been paid by the bank. Option D is incorrect because the checks have been written but not yet recorded in the company books.

Outstanding Checks Refer to Checks That Have Been