A stop-payment order is a request that a bank or other financial institution not cash a particular check. True False
Question
A stop-payment order is a request that a bank or other financial institution not cash a particular check.
- True
- False
Solution
Evaluation of Statement
-
Understanding the Terms: A stop-payment order is indeed a directive given by a bank customer to prevent the bank from processing a specific check. This can occur when the customer believes the check was issued in error, lost, stolen, or in cases of fraud.
-
Functionality: When a stop-payment order is placed, the bank will not honor that particular check if it is presented for payment. This protection allows the account holder to safeguard against unauthorized transactions.
-
Conclusion: Given the definition and functioning of a stop-payment order, the statement provided is accurate.
Final Answer
True
Similar Questions
The cash disbursements system processes the payment of obligations created in the purchases system.Select one:TrueFalse
The entry to record monthly installment payments includes a credit to Notes Payable.Group startsTrue or False
Which one of the following items would not be considered cash? Group of answer choices Postdated cheques Coins Money orders Currency
"Payola" refers to the practice of plugging records in exchange for payment.Group startsTrue or FalseTrue, unselectedFalse, unselected
Reserves of cash kept with itself by a bank to meet its payment requirements is called
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.