When preparing a bank reconciliation,outstanding checks 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 ledger but have not yet been cleared by the bank. Therefore, they decrease the balance per the bank statement until they are processed.

When Preparing a Bank Reconciliation,outstanding Checks Will