Outstanding checks refer to checks that have been:
A)Written,recorded,sent to payees,and received and paid by the bank.
B)Written and not yet recorded in the company books.
C)Held as blank checks.
D)Written,recorded on the company books,sent to the customer,supplier,or creditor but not yet paid by the bank.
E)Issued by the bank.

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been written, recorded in the company books, sent to the payee (customer, supplier, or creditor), but not yet paid by the bank. This means that the company's bank account balance will be higher than its actual balance until the checks are cleared by the bank. The other choices are incorrect: A describes cleared checks, B describes unrecorded checks, C describes blank checks, and E describes bank-issued checks (which would not be outstanding).

Outstanding Checks Refer to Checks That Have Been