If a Check That Was Outstanding on Last Period's Bank

question 171

Multiple Choice

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

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

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Definitions:

Fiduciary Duty

A legal or ethical relationship of trust where one party, the fiduciary, acts in the best interest of another, the principal or beneficiary.

Delaware

A state in the United States known for its business-friendly laws and courts, which make it a popular jurisdiction for incorporating companies.

Publicly Traded Corporations

Companies whose shares are offered for sale to the general public through a stock exchange.

State

A politically organized body of people usually occupying a definite territory; especially one that is a constituent of a federal republic like the USA.