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Commerce · Q132

Accounting

Graduate and Post Graduate · Commerce · question 132

Q132

A cheque returned by bank marked "NSF" means that

A.
Bank can't verify your identity
B.
There are not sufficient funds in your account
Answer
C.
Cheque has been forged
D.
Cheque can't be cashed being illegal

Answer: Option B

Solution

Answer: Option B
Solution:
A cheque returned by bank marked "NSF" means that There are not sufficient funds in your account. Non-sufficient funds (NSF) is a term used in the banking industry to indicate that a cheque cannot be honored because insufficient funds are available in the account on which the instrument was drawn.