Question

Checks should be deposited promptly for all of the following reasons EXCEPT

A.time restriction for cashing.
B.they may be lost or stolen.
C.there is a possibility of a stop-payment order.
D.bank reconciliation.
E.funds are needed immediately.

Answer 1

Checks should be deposited promptly for several reasons, including the possibility of a stop-payment order, the risk of lost or stolen checks, and accurate bank reconciliation. However, checks don't need to be deposited promptly if funds are needed immediately.

Step-by-step explanation:

Checks should be deposited promptly for several reasons. One reason is that there is a possibility of a stop-payment order. If a check is not deposited promptly, the account holder may request a stop-payment order, which would prevent the check from being cashed. Additionally, checks may be lost or stolen if not deposited promptly, increasing the risk of fraud. Bank reconciliation is also an important reason to deposit checks promptly. By depositing checks promptly, the account holder can ensure that their bank statement accurately reflects their account balance.

However, one reason why checks don't need to be deposited promptly is if funds are needed immediately. If the account holder needs the funds right away, they may choose to cash the check or use other means to access the funds without depositing the check.