What Is an Outstanding Check

question 5

Multiple Choice

What is an outstanding check?

• A)A check that has been issued by the company but has not been presented to the bank for payment.
• B)A check that is guaranteed for payment by the bank.
• C)A check that has been presented to the bank for payment but has not been reported on the bank statement.
• D)A check that was written for an amount that is greater than the balance in the account holder's bank account.

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Definitions:

Negotiable Interest

An interest in a financial asset, like a note or draft, that can be transferred from one party to another in a manner that the transferee gains legal ownership and the right to enforce the instrument.

Primarily Liable

Having the main or first responsibility for fulfilling an obligation or debt.

Imposter

A person who deceives others by pretending to be someone else for personal or financial gain.

Obligor

A person or entity legally bound to provide a payment, service, or other benefit to another (the obligee) under the terms of a contract or legal agreement.