1. How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?

A. They would be added to the balance of the bank statement.

B. They would be subtracted from the balance of the bank statement.

C. They would be added to the balance per books.

D. They would be ignored.

2. If the bank charged another company's check against Shoe Depot's account, this would be included on the bank reconciliation as a/an

A. addition to the balance per books.

B. subtraction from the balance per books.

C. addition to the balance per bank.

D. subtraction from the balance per bank.

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8 August, 20:34

1. How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?

A. They would be added to the balance of the bank statement.

B. They would be subtracted from the balance of the bank statement.

C. They would be added to the balance per books.

D. They would be ignored.

2. If the bank charged another company's check against Shoe Depot's account, this would be included on the bank reconciliation as a/an

A. addition to the balance per books.

B. subtraction from the balance per books.

C. addition to the balance per bank.

D. subtraction from the balance per bank.

+1

Answers (1)

Know the Answer?

Heidi Flynn · Answer 1

The correct options are as follows:

1. B.

In the case given in this question, an outstanding check is a check that draws on the funds in the bank's accounts but which has not yet been cashed. During the period of reconciliation, the amount in the outstanding check will be deducted from the balance of the bank statement.

2. C.

The amount of money gained from charging another company's check against Shoe Depot's account will be recorded during reconciliation as an addition to the balance per bank.