Question

Canceled checks are negotiable at the bank for the face value. True or false

Answer 1

The answer is False because when a check is canceled, it means that it has been paid by the drawee bank and already endorsed by the payee and the payee’s bank. They are considered as non-negotiable which the bank cannot take it for it is now only use for documenting a transaction that has already take place. However, canceled checks can be used as proof of payment.