An outstanding deposit is recorded by the company but not yet reflected on the bank statement.

• A. True
• B. False
• C. It depends on timing
• D. Not recorded by the company

Answer: (A)

A cash receipt that the company has already recorded but the bank has not yet posted is an outstanding deposit. This happens due to timing differences between when the company records the cash and when the bank processes the deposit. Because the company has recorded the deposit, but the bank statement hasn’t reflected it yet, the statement will not show that cash amount at that moment. So the statement is true. The other options don’t fit: the deposit is indeed outstanding, timing explains why it hasn’t appeared yet, and the company has recorded it, so saying it wasn’t recorded would be incorrect.