passwella.
Menu

JAMB Principles of Accounts 2007 Question 40

Question 40

Banking and Bank Reconciliation

The process whereby a cheque received by one person is given to another for payment is known as

  1. A.cheque crossing
  2. B.payment in cheque
  3. C.cheque transfer
  4. D.cheque endorsement.
Show the answer and explanation

Answer: D (cheque endorsement.)

Explanation

The payee signs the back of the cheque (endorses it) to transfer it to another person.