Highland Bakery Inc.has forwarded a cheque to Prairie Flour Mills Ltd.to pay Prairie's invoice for the flour it recently delivered.Prairie will deposit the cheque into its account upon receipt.How will the actual cash payment represented by the cheque be credited to Prairie Flour Mills' account?

Question

Quizplus · Accepted Answer

The actual cash payment represented by the cheque will be credited to Prairie Flour Mills' account through the bank's centralized clearing process. This process involves the collection, exchange, and settlement of cheques between banks through a central clearinghouse.