BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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blank endorsement
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special endorsement
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restrictive endorsement
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signature endorsement
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Detailed explanation-1: -9. An endorsement consisting of the words “Pay to the order of” and a new owner’s name is a special endorsement. 10. A check with a future date on it is a postdated check.
Detailed explanation-2: -Blank Endorsement – An endorsement consisting of only the endorser’s signature. If a check with a blank endorsement is lost, anyone can cash it. Use this only when you’re at the bank, ready to cash the check or deposit it into your account.
Detailed explanation-3: -Signing the back of the check is called “endorsing” it.” This endorsement provides the bank with an opportunity to verify your identity and ensure the check is deposited into the correct account. All parties who are listed on the “pay to” line on the front of the check should endorse the back.
Detailed explanation-4: -If you write “for deposit only” on the back of a check made out to you and then sign your name, the check can only be deposited in your account. This is called a “restrictive indorsement, ” and it should prevent you or any other person from cashing the check.