Fundamentals of Accountancy, Business, and Management (FABM) 2 Practice Exam 2026 - Free Accountancy and Business Practice Questions and Study Guide

When a check cannot be paid because there isn’t enough money in the drawer’s account, it’s called a bounced check, often described as a non-sufficient funds (NSF) check. This term specifically captures the reason for the return—the bank cannot honor the payment due to insufficient funds.

Post-dated checks are simply dated for a future date and may be honored if funds exist when presented; traveler’s checks are prepaid instruments owned by the traveler; and a manager’s (cashier’s) check is bank-guaranteed funds drawn on the bank itself, not dependent on the drawer’s account balance.