Day: May 25, 2019

Cheques are sometimes ‘crossed’…?

Select ONE answer:

1. so that they cannot be ‘cashed‘ for a certain period of time.
2. to prevent them from being lodged into a bank account.
3. so as to avoid any person, other than the person to whom they are written, deriving any benefit from them.
4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Whether a cheque is ‘crossed’ or not has no effect on when it can be ‘cashed’.
2. The most common reason for crossing a cheque is to ensure that cheques are lodged directly into the recipient’s bank account.
3. Correct
4. Not correct

 

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