Checks presented for payment and paid by the bank are known as
A)canceled checks.
B)certified checks.
C)NSF checks.
D)outstanding checks.

Question

Quizplus · Accepted Answer

Checks that have been presented for payment and have been cleared by the bank are referred to as canceled checks. This means that the funds have been withdrawn from the account and the payment has been made to the recipient. Certified checks, on the other hand, are checks that have been issued by a bank, and the funds have been guaranteed, meaning that the payment will be made to the recipient when the check is presented. NSF checks, or non-sufficient funds checks, occur when there is not enough money in the account to cover the amount of the check, and the check is returned to the recipient without payment. Outstanding checks are checks that have been issued but have not yet been presented for payment.

Checks Presented for Payment and Paid by the Bank Are