Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 32 - No. 9)
When preparing a bank reconciliation, what happens to outstanding checks?
They are added to the book balance.
They are subtracted from the book balance.
They are added to the bank balance.
They are subtracted from the bank balance.
Explanation
Outstanding checks reduce the bank balance, as the company has written the check but it has not yet cleared.
Comments (0)
