BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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postdated check
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dishonored check
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cancelled check
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cleared check
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Detailed explanation-1: -What is a Postdated Check? A postdated check is one that is written with a future date indicated on it. This is usually done to account for an anticipated delay in deposit. For example, you may decide you would like to postdate a check if you are sending in a bill payment earlier than the due date.
Detailed explanation-2: -The post-dated check is the most common means of payment for a loan. It is a check that is written and issued by the debtor for a date in the future and may not be encashed or deposited until such time. Debtors use post-dated checks to avoid missing payments on their loans.
Detailed explanation-3: -Yes. Banks and credit unions generally don’t have to wait until the date you put on a check to cash it. However, state law may require the bank or credit union to wait to cash the check if you give it reasonable notice.