Issuance of a duplicate or replacement check without voiding the original entry can result in paying a claim twice - once to the claimant and again to:

Question

Options

• Adeposited cash
• Bservice charges
• Cescheat fund
• Daggregate write-ins

• A
  16% (6)
• B
  11% (4)
• C
  71% (27)
• D
  3% (1)

Explanation

Issuing a duplicate or replacement check without voiding the original creates a liability on two fronts: the claimant may cash the replacement check, while the uncashed original check eventually becomes unclaimed property that must be remitted to the state through the escheat process - meaning the company effectively pays the same obligation twice, once to the claimant and once to the state's escheat fund.

Why the distractors are wrong:

• A (Deposited cash): This refers to funds already received by the company, not an obligation created by a duplicate check.
• B (Service charges): These are bank fees for account maintenance, entirely unrelated to the disbursement of duplicate payments.
• D (Aggregate write-ins): This is an accounting catch-all category for miscellaneous items that don't fit standard line items - it has no connection to uncashed check liabilities.

Memory tip: Think of escheat as the state acting as a "finder's fee" collector - if your company forgets to void the original check, the state eventually finds that unclaimed money and takes it. "Duplicate check + no void = pay the claimant AND pay the state."

No community discussion yet for this question.