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

Question

Quizplus · Accepted Answer

Outstanding checks are those checks that have been recorded on the company's books and sent to the intended payees, but not yet cleared by the bank. They represent a liability for the company until they are paid by the bank. Option A is incorrect because checks cannot both be received and paid by the bank. Option B is incorrect because outstanding checks have already been written. Option C is incorrect because blank checks are not considered outstanding checks. Option E is also incorrect because outstanding checks are issued by the company, not the bank.

Outstanding Checks Refer to Checks That Have Been