Question

In a company's bank reconciliation, an outstanding check is a check that: Multiple Choice has been written for an amount that is greater than the balance in the account holder's bank account. is guaranteed for payment by the bank. has been presented to the bank for payment but has not been reported on the bank statement. has been issued by the company but has not been presented to the bank for payment.

Answer 1

Answer:

The correct answer is the last option: has been issued by the company but has not been presented to the bank for payment.

Explanation:

To begin with, the concept of ''outstanding check'' comprehends the check that it has been written in the accounts of the company due to the fact that it has already been issued by them in a previous situation, but this check has not been presented to the bank for payment and that is why the amount that the company has in its account will be greater that the true amount of cash that is being managed in the company's bank account. Therefore that the instrument of the bank reconciliation is used in those cases.