Join ExamsbookAnswer : 1. "Deducted from the balance sheet"
In preparing a bank reconciliation, outstanding checks are5
Q: In preparing a bank reconciliation, outstanding checks are
- 1Deducted from the balance sheettrue
- 2Added to the bank balancefalse
- 3Deducted from the bank balancefalse
- 4Added to the balance sheetfalse
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Answer : 1. "Deducted from the balance sheet"
Explanation :
Answer: A) Deducted from the balance sheet Explanation: If an outstanding check of the previous month clears the bank (is paid by the bank) in the current month, you simply remove that check from the list of outstanding checks. If an outstanding check of the previous month does not clear the bank in the current month, the check will remain on the list of outstanding checks until the month that it does clear the bank. In the bank reconciliation process, the total amount of the outstanding checks is deducted from the balance appearing on the bank statement.