BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -GROSS BALANCE or BOOK BALANCEThis refers to the total amount of money a bank has on deposit before adjusting forcleared checks or deposits, as well as reserve requirements.

Detailed explanation-2: -The total amount of money a bank has on deposit before adjusting for uncleared checks or deposits, as well as reserve requirements. That is, the book balance is a measure of what the bank has on hand prior to adding or subtracting regulatory obligations and items that will soon appear on its books.

Detailed explanation-3: -Adjusted Bank Balance: Adjusted bank balance refers to a company’s bank balance after adjustments for deposits in transit, uncleared checks, and bank errors. The difference in amount between adjusted bank balance and the cash balance per books relates to the reconciling items that need to be adjusted in the books.

Detailed explanation-4: -Share: The definition of an outstanding check is a check that has been written, but it hasn’t been cashed-deposited by the bank, or otherwise cleared the bank. An outstanding check can be a personal or a business check.

Detailed explanation-5: -Answer and Explanation: (B) Outstanding checks are deducted from the bank balance to arrive at the reconciled cash balance in a bank reconciliation. Outstanding checks are those that are recorded on a company’s books, but do not show up in the bank statement checks cleared.