Another name or term for a dishonoured cheque is

Assessment: JAMB UTME - Commerce - 2023 Subject: Commerce

Question 1 Report

Another name or term for a dishonoured cheque is
Answer Details
Another term for a dishonored cheque is a **bounced cheque**. When a person writes a cheque to someone, they are essentially authorizing their bank to transfer funds from their account to the recipient's account. However, if there are insufficient funds in the account, the bank will be unable to complete the transaction and the cheque will be bounced, or dishonored. There are various reasons why a cheque may bounce, such as insufficient funds, a closed account, or a mismatched signature. When a cheque bounces, it means that the payment cannot be made as originally intended, and the recipient will not receive the funds. So, to summarize, a dishonored cheque is commonly referred to as a **bounced cheque** because the payment authorization is not fulfilled by the bank due to insufficient funds or other issues.

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