In banking terms, a voided check is best described as:

In banking terms, a voided check is best described as:

• A. A check that has been processed and cleared.
• B. A check that can't be processed because the business has made the check invalid.
• C. A check that is used to make a direct deposit.
• D. A check that is post-dated.

Answer: (B)

A voided check is a check that cannot be processed because it has been marked void, making it invalid for payment. This prevents the check from clearing, but the document can still be used to share routing and account numbers for setting up direct deposits. That description captures why a voided check exists: it’s not payable, even though you might use its information to arrange deposits. The idea of a check being processed and cleared isn’t applicable to a voided one, and post-dating isn’t related.

A voided check is a check that cannot be processed because it has been marked void, making it invalid for payment. This prevents the check from clearing, but the document can still be used to share routing and account numbers for setting up direct deposits. That description captures why a voided check exists: it’s not payable, even though you might use its information to arrange deposits. The idea of a check being processed and cleared isn’t applicable to a voided one, and post-dating isn’t related.