Question

Aurora needs to have her car's radiator replaced. She takes it to Jose, who makes the necessary repair. Aurora writes him a check to pay for the work. In this transaction, presentment occurs when: a. Aurora writes the check. b. Jose presents the check to Aurora's bank. c. Aurora's bank presents her with the canceled check. d. Aurora presents the check to Jose.

Answer 1

In this transaction, presentment occurs when: b. Jose presents the check to Aurora's bank.

Explanation:

Presentment is generally known as the demand for the payment or acceptance of a negotiable instrument, such as a check. In simple, presentment refers to the presentation of transaction data to a bank by a trader/dealer, so the bank may process the transaction.

In the above statement, Aurora writes a check to pay for the work done by Jose. Here the presentment occurs when the payee, Jose, presents the check to the bank because the bank is liable for payment.