Which statement about postdated checks is true?

Which statement about postdated checks is true?

• A. They are not cashed
• B. They are cashed normally
• C. They are cashed only with manager approval
• D. They are cashed only with supervisor approval

Answer: (A)

Postdated checks carry a future date, and the payment is intended to occur on that date, not before. Because honoring the payment earlier can put the payer at risk of insufficient funds and complicate accounting, the standard practice is not to cash or deposit a postdated check until its date. In a store setting, this means you should not cash or process the check before the date; if needed, hold or re-route the payment until the specified date and use another method of payment in the meantime. The other options imply normal early processing or require approvals, which contradicts the intended timing of postdated checks.

Postdated checks carry a future date, and the payment is intended to occur on that date, not before. Because honoring the payment earlier can put the payer at risk of insufficient funds and complicate accounting, the standard practice is not to cash or deposit a postdated check until its date. In a store setting, this means you should not cash or process the check before the date; if needed, hold or re-route the payment until the specified date and use another method of payment in the meantime. The other options imply normal early processing or require approvals, which contradicts the intended timing of postdated checks.