Disbursements on the Bank Transfer Schedule Should Be Correctly Included

Multiple Choice

Disbursements on the bank transfer schedule should be correctly included in or excluded from year-end bank reconciliations as outstanding cheques.Understating outstanding cheques on the bank reconciliation indicates

A) the possibility of kiting.
B) a cutoff error in the bank account.
C) an understatement of the bank balance.
D) an increase in inherent risks associated with cash.