A check returned by bank marked "NSF" means that:
Correct answer: B. There are not sufficient funds in your account
- A. Bank can't verify your identity
- B. There are not sufficient funds in your account
- C. Check has been forged
- D. Check can't be cashed being illegal
Explanation
NSF means “not sufficient funds,” indicating that the account did not contain enough money to honor the check. The bank consequently returns the check unpaid.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
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