YouScience Accounting 1 Practice Exam

Which statement would properly identify a voided check?

A check written to a vendor that is going to be mailed. A check that is pending approval by the bank. A check that can't be processed because the business has made the check invalid. A check that has been lost in the mail.

Correct Answer:

A check that can't be processed because the business has made the check invalid.

Explanation:

A voided check is a check that has been canceled so it cannot be paid or negotiated. This is usually done by marking the check with VOID (or by recording it in a system as canceled) to prevent any further processing while still allowing someone to use the bank details for setup purposes like direct deposits or ACH payments. Because a voided check is intentionally made invalid, the statement that describes a check that can’t be processed because the business has made the check invalid best captures what a voided check is. It’s not simply a check mailed to a vendor, not a check awaiting bank approval, and not a check lost in the mail—the common element is deliberate cancellation so the check cannot be used.

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