Knowee
Questions
Features
Study Tools

Outstanding checks have already been ______.Multiple choice question.deducted from the bank balance but not the cash per your booksdeducted from your cash balance per your books but not the bank balanceadded to your cash balance per your books and not to the bank balanceadded to the bank balance and not to your cash balance per your books

Question

Outstanding checks have already been ______.Multiple choice question.deducted from the bank balance but not the cash per your booksdeducted from your cash balance per your books but not the bank balanceadded to your cash balance per your books and not to the bank balanceadded to the bank balance and not to your cash balance per your books

🧐 Not the exact question you are looking for?Go ask a question

Solution

The correct answer is: "deducted from the bank balance but not the cash per your books".

Here's why:

Outstanding checks are checks that have been written and recorded in the company's general ledger, but have not yet been cleared by the bank. This means that the bank is not yet aware of these checks, so they are not deducted from the bank balance. However, since the company has already recorded these checks in its books, they are deducted from the company's cash balance.

So, when you are reconciling your bank statement, you need to account for these outstanding checks. They are deducted from the bank balance (because the bank doesn't know about them yet), but not from the cash per your books (because you have already recorded them).

This problem has been solved

Similar Questions

Outstanding checks are checks that ______.Multiple choice question.have been written but have not yet cleared the bankare over an allowed maximum amounthave not been deducted from the cash balance per the accounting records but has been deducted by the bankhave not yet been written but are owed

Deposits in transit have already been ______.Multiple choice question.deducted from your cash balance per your books because they have not cleared the bankadded to your cash balance per your books and not to the bank balanceadded to the bank balance and not to your cash balance per your books

Identify the item below that would be added to the book balance.Multiple choice question.Outstanding checksInterest earnedNSF checkBank service charge

In preparing a bank reconciliation, outstanding checks areGroup of answer choicesdeducted from the balance per books.added to the balance per bank.added to the balance per books.deducted from the balance per bank.

Choose the items below that would be subtracted from the book balance on a bank reconciliation.Multiple select question.Note collected by the bank for the depositorMonthly bank service chargeNSF customer checkOutstanding checksInterest earned on the depositor's accountCleared checksMonthly check charges assessed by the bank

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.