Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 25 - No. 13)
What is the effect of an outstanding check on a bank reconciliation?
Increases the book balance.
Decreases the book balance.
Increases the bank balance.
Decreases the bank balance.
Explanation
Outstanding checks are subtracted from the bank balance because the company has already decreased its cash balance.
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