When reconciling the ending bank balance per the company records to the correct adjusted bank balance, outstanding cheques are
A) subtracted from the company's records balance.
B) added to the company's records balance.
C) added to the bank statement balance.
D) subtracted from the bank statement balance.

Question

Quizplus · Accepted Answer

Outstanding checks are subtracted from the bank statement balance because they have been recorded by the company but not yet cleared or processed by the bank. This adjustment is necessary to reconcile the company's records with the bank's records.

When Reconciling the Ending Bank Balance Per the Company Records