What is an outstanding deposit?


Quick Answer

An outstanding deposit is a business term used to indicate an amount of money that has been recorded in the company's ledger but has not yet appeared on its bank statement as a deposit. This generally occurs because of the time needed by the bank to process deposits.

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Full Answer

For the purpose of business bookkeeping, an outstanding deposit is considered final, and just waiting for the bank statement to reflect the actual deposit is generally just a formality. In terms of a company's financial statement, outstanding deposits are still counted toward the overall "bottom line" and are considered receivables on the balance sheet.

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