Future Business Leaders of America (FBLA) Accounting Practice Test

What is unique about a postdated check?

1. It can be cashed immediately

2. It has a future date written on it

3. It cannot be endorsed

4. It is automatically considered a dishonored check

The correct answer is: It has a future date written on it

A postdated check is unique because it contains a future date written on it, which signifies that the check is not intended to be cashed or deposited until that specified date. This feature differentiates it from regular checks, which can be cashed or deposited on the date they are issued. The purpose of a postdated check is often to align with the timing of the payee's cash flow or to provide assurance of payment at a later date. Therefore, individuals receiving a postdated check generally understand that delivery can occur before the date on the check, but actual access to the funds should not happen until that date arrives. The nature of a postdated check means it cannot be processed by banks until the date written on it, protecting both the issuer and the recipient in regards to financial timing.