Final answer:
True, an outstanding cheque is one that has been accounted for in a company’s general ledger but has not yet appeared on the bank statement due to the processing time lag.
Step-by-step explanation:
The statement, An outstanding cheque is one that has been recorded in the general ledger, but has not been recorded on the bank statement, is True. An outstanding cheque is indeed a cheque that has been written by a company and subtracted from the company’s cash balance, but it has not yet cleared the bank account on which it is drawn. This situation typically occurs because there is usually a time lag between when a cheque is written and when it is actually presented to the bank for payment. Until the bank processes the cheque, it will not appear on the bank statement, creating a discrepancy between the company's records and the bank's records. To rectify this during bank reconciliation, the amount of the outstanding cheques will be subtracted from the bank statement balance.