The amount of the outstanding checks is included on the bank reconciliation as a (n)
A) deduction from the balance per company's records
B) addition to the balance per bank statement
C) deduction from the balance per bank statement
D) addition to the balance per company's records

Question

Quizplus · Accepted Answer

The outstanding checks are checks that have been issued but have not yet cleared the bank. Therefore, they are still reducing the company's available balance in the bank, but they have not been reflected in the bank statement. Hence, they should be deducted from the balance per bank statement to arrive at the correct balance.

The Amount of the Outstanding Checks Is Included on the Bank