When preparing a bank reconciliation, checks outstanding will:
A) Increase the balance per depositor's records.
B) Decrease the balance per depositor's records.
C) Increase the balance per the bank statement.
D) Decrease the balance per the bank statement.

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been written and recorded in the depositor's records but have not yet cleared the bank. Therefore, they decrease the balance per the bank statement.

When Preparing a Bank Reconciliation, Checks Outstanding Will