when preparing a bank reconciliation, outstanding checks would be: multiple choice added to the companys…

when preparing a bank reconciliation, outstanding checks would be: multiple choice added to the companys cash balance. added to the banks cash balance. subtracted from the banks cash balance. subtracted from the companys cash balance.

when preparing a bank reconciliation, outstanding checks would be: multiple choice added to the companys cash balance. added to the banks cash balance. subtracted from the banks cash balance. subtracted from the companys cash balance.

Answer

Brief Explanations:

Outstanding checks are checks that a company has issued but have not yet cleared the bank. Since the bank has not yet deducted these amounts from its records, when preparing a bank - reconciliation, we need to subtract the amount of outstanding checks from the bank's cash balance to reconcile it with the company's adjusted cash balance.

Answer:

C. Subtracted from the bank's cash balance.