Question

In a company‘s bank reconciliation and outstanding check is a check that?

Answer 1

An outstanding check is a check that has been written by a company (and deducted from the appropriate general ledger cash account) but it has not yet cleared the bank account on which it is drawn. Hence, outstanding checks will mean that the balance in the bank account will be greater than the balance in the general ledger account (or in an individual's check register).

In the bank reconciliation process, the total amount of outstanding checks is subtracted from the ending balance on the bank statement when computing the adjusted balance per bank.

An outstanding check is a check payment that has been recorded by the issuing entity, but which has not yet cleared its bankaccount as a deduction from its cash balance. The concept is used in the derivation of the month-end bank reconciliation

In a company’s bank reconciliation, an outstanding check is a check that:

A. is guaranteed for payment by the bank.

B. has been issued by the company but has not been presented to the bank for payment.

C. has been presented to the bank for payment but has not been reported on the bank statement.

D. has been written for an amount that is greater than the balance in the account holder’s bank account.