ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is an Outstanding Check? An outstanding check is a check payment that is written by someone but has not been cashed or deposited by the payee.

Detailed explanation-2: -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-3: -An outstanding check is a check payment that has been recorded by the issuing entity, but which has not yet cleared its bank account as a deduction from its cash balance. The concept is used in the derivation of the month-end bank reconciliation.

Detailed explanation-4: -Checks that have been paid by the bank they are drawn on. After the money is deducted from your checking account, the bank will cancel the check, so it can no longer be used. You may be asked to provide copies of canceled checks to prove payments for divorce settlement, child support, or other required expenses.

Detailed explanation-5: -What is an Uncleared Check? An uncleared check is a check that has not yet been paid by the bank on which it was drawn. Such a check has already been recorded by the payee and presented to its bank. There is a clearing cycle that must then be completed that lasts several days.