The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31.Cash balance according to the general ledger

-Refer to Dance Town Academy. How will the outstanding checks be handled on a bank reconciliation?
A)add to the balance from the company records
B)subtract from the balance from the company records
C)add to the bank statement balance
D)subtract from the bank statement balance

Question

The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31.Cash balance according to the general ledger

-Refer to Dance Town Academy. How will the outstanding checks be handled on a bank reconciliation?
A)add to the balance from the company records 
B)subtract from the balance from the company records 
C)add to the bank statement balance 
D)subtract from the bank statement balance

Quizplus · Accepted Answer

Outstanding checks are checks that have been written by the company but have not yet been cleared by the bank. Therefore, they are subtracted from the bank statement balance to reconcile the company's records with the bank's records.

The Items Listed Below Were Identified While Preparing a Bank