cheque-encashment

Vocabulary Word

Definition

'Cheque-encashment' refers to when you take a cheque to the bank and get cash. It's like trading your cheque for real money. Remember, you have to have the same name on the cheque as in your bank account.

Examples in Different Contexts

For personal finance, 'cheque encashment' allows individuals to access the funds represented by a cheque immediately. A financial advisor might advise, 'Ensure you have sufficient funds in your account before issuing a cheque to avoid encashment issues.'

Practice Scenarios

Accounting

Scenario:

We ought to keep tabs on all financial transactions to reflect accurate accounts. It helps in better financial planning.

Response:

I need to update the accounts to reflect last week's cheque encashment. It will show a clearer picture of the business capital.

Finance

Scenario:

It is essential to keep some liquidity for unexpected expenses. It gives you financial stability.

Response:

Agreed, I think I should encash my cheque soon for maintaining a steady cash flow.