Future Business Leaders of America (FBLA) Accounting Practice Test

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Prepare for the FBLA Accounting Test with practice quizzes and comprehensive questions. Each question is designed to help deepen your understanding and enhance your readiness for the exam. Are you ready to excel?

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What does writing "void" on a check signify?

That the check can be reused
That the check is written in error and is invalid
That the check has been endorsed
That the check is for a refund

The correct answer is: That the check is written in error and is invalid

Writing "void" on a check indicates that the check is written in error and is therefore invalid. This action prevents the check from being cashed or deposited, ensuring that it cannot be used for any transaction. When "void" is clearly marked on a check, it serves as a formal cancellation, signaling to all parties involved—banks, payees, and financial institutions—that the check should not be processed. This practice is particularly useful in accounting to avoid confusion over payments and to maintain accurate financial records. The other options do not accurately represent the implication of marking a check as "void." Reusing a check or suggesting it is for a refund or that it has been endorsed would not apply when "void" is written on it, as these would typically suggest that the check is still active or valid in some manner.