Reasons for dishonouring cheques. - SS2 Commerce Past Questions and Answers - page 1
Why would a cheque be dishonored?
Insufficient funds in the issuer's account
The cheque is post-dated
The cheque has a mismatched signature
What happens when a cheque is dishonored?
The recipient receives double the amount written on the cheque
The bank refuses to honor or accept the cheque for payment
The cheque is cashed immediately at the bank
The bank refuses to honor or accept the cheque for payment
Which alteration on a cheque may lead to its dishonor?
Adding a memo or note on the back of the cheque
Crossing the cheque with two parallel lines
Overwriting the payee's name without authorization
When might a post-dated cheque be dishonored?
When the recipient tries to cash it before the future date
When the cheque is deposited into a bank account
When the cheque is written in a foreign currency
When the recipient tries to cash it before the future date
Why would a bank dishonor a cheque due to a stop payment request?
The cheque has insufficient funds
The bank account is closed
The issuer has requested the bank not to honor the cheque
What is the consequence of a dishonored cheque?
The bank refuses to honor or accept the cheque for payment, and the recipient does not receive the intended payment.
Can a post-dated cheque be cashed before the future date?
No, a post-dated cheque should not be cashed until the specified future date written on the cheque.