BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -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-2: -A check becomes outstanding when the payee doesn’t cash or deposit the check. This means it doesn’t clear the payor’s bank account and doesn’t appear on the statement at the end of the month. Since the check is outstanding, this means it is still a liability for the payor.

Detailed explanation-3: -An outstanding check is a check that a company has issued and recorded in its general ledger accounts, but the check has not yet cleared the bank account on which it is drawn. This means that the bank balance will be greater than the company’s true amount of cash.

Detailed explanation-4: -Any outstanding checks that have still not cleared the bank will need to remain on the outstanding check list portion of the bank reconciliation. Any deposits in transit that do not appear on the bank statement will remain reconciling items, but will need to be researched with the bank.

Detailed explanation-5: -Definition of Outstanding Checks Outstanding checks are checks written by the company, recorded in the company accounts, but not yet appearing on the bank account as paid.