Which of the following items used to reconcile cash does not require an adjusting entry?
A)bank service charge
B)interest earned
C)note collected by the bank
D)outstanding cheques

Question

Quizplus · Accepted Answer

Outstanding cheques are cheques issued by a company that have not yet been presented to the bank for payment. They do not require an adjusting entry in the company's books because they have already been recorded as a reduction in the cash account when the cheques were issued. The reconciliation process simply accounts for the timing difference between when the cheque was recorded by the company and when it was processed by the bank.

Which of the Following Items Used to Reconcile Cash Does