When reconciling the bank statement, outstanding deposits are:
A) subtracted from the bank statement
B) subtracted from the checkbook
C) added to the checkbook
D) added to the bank statement

Question

Quizplus · Accepted Answer

Outstanding deposits are amounts that have been recorded in the company's cash account but have not yet been reflected on the bank statement. When reconciling, these amounts are added to the bank statement balance to account for the deposits in transit, aligning the company's records with the bank's records.

When Reconciling the Bank Statement, Outstanding Deposits Are