Which of the following is a reconciling item on the bank side of a bank reconciliation?
A)canceled checks
B)outstanding checks
C)NSF checks
D)both b and c

Question

Quizplus · Accepted Answer

Outstanding checks are checks that the company has issued but have not yet cleared the bank. This means that the bank has not yet deducted the amount of the check from the company's account. Therefore, outstanding checks are a reconciling item on the bank side of a bank reconciliation. Canceled checks and NSF (non-sufficient funds) checks are not reconciling items on the bank side because they have already been processed by the bank.

Which of the Following Is a Reconciling Item on the Bank