What is the name of a check that has been paid and cleared by the bank?

Prepare for the Pittsburgh Institute of Mortuary Science Test with interactive quizzes and detailed explanations. Enhance your knowledge and get ready to excel on your exam!

A check that has been paid and cleared by the bank is referred to as a cancelled check. This term indicates that the check has been processed, the funds have been withdrawn from the payer's account, and the transaction is complete. The bank marks the check as cancelled, which provides a record of the payment. This is important for both accounting purposes and for the payee, who can confirm that the transaction has been completed successfully.

In contrast, a certified check is one that the bank has verified as having sufficient funds and guarantees payment, while a void check is simply a check that is marked to indicate it cannot be used, often for the purpose of ensuring no funds will be drawn from the account. A post-dated check is one that is written with a future date, and thus may not be processed until that date arrives. Each of these other types of checks serves a specific purpose but does not refer to a check that has been executed and cleared.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy