What term refers to checks that have been issued by a depositor but not yet reported on a bank statement?

The term that refers to checks that have been issued by a depositor but not yet reported on a bank statement is "outstanding checks." Outstanding checks are essentially those that a person has written and recorded in their accounting but have not yet cleared the bank. This means the bank has not processed the payment and the funds have not yet been deducted from the issuer's account.

Understanding outstanding checks is essential for accurate personal financial management. When reconciling a bank statement, a person must account for these checks as they represent obligations that have not yet been fulfilled. This helps maintain an accurate balance in one's records and ensures proper tracking of available funds.

In contrast, cleared checks are those that have already been processed and the payment has been made. Pending checks might suggest a situation where checks are still waiting for approval or processing, but this terminology can vary and is less commonly used in banking. Cancelled checks refer to checks that have been processed and marked as void, which is not applicable in this context.