What does "outstanding" refer to in a banking context?

In a banking context, the term "outstanding" typically refers to a check that has been issued but has not yet been presented for payment. This means that the check is still active, and the funds are not yet deducted from the issuer's account because the recipient has not yet cashed or deposited the check. It is important for individuals and businesses to track outstanding checks, as these represent pending liabilities that will reduce their bank balance once processed.

The other options relate to different banking concepts. The individual to whom the bank is ordered to pay cash refers to the payee of the check but does not define the term "outstanding." Funds available for withdrawal denote cash that can be accessed immediately, not checks in transit. An annual financial report is a summary of an organization's financial performance over a year and is unrelated to the term "outstanding" in the context of banking. Understanding these distinctions helps clarify financial communication and obligations in banking transactions.