Unpresented cheques are cheques_________
-
That have been recorded in the cash book but not by the bank
- That have been received by the bank, but not recorded in the cash book
- Returned by the bank
- Written but not handed over to customers
The correct answer is: A
Explanation
Unpresented cheques are cheques which have not yet cleared through the banking system. It is a term used in the preparation of a bank reconciliation statement. For example, if a business writes a cheque, it will post it to its cash book that day and then send it on to its supplier.