A Check That Was Outstanding on Last Period's Bank Reconciliation

question 163

Multiple Choice

A check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period. As a result, in preparing this period's reconciliation, the amount of this check should be:

• A) Added to the book balance of cash.
• B) Deducted from the book balance of cash.
• C) Added to the bank balance of cash.
• D) Deducted from the bank balance of cash.
• E) Ignored in preparing the period's bank reconciliation.