Future Business Leaders of America (FBLA) Business Calculations Practice Test

When the numerical amount on a check differs from the written amount, which one prevails?

1. The amount in numbers

2. The amount in words

3. Determined by the bank

4. The check is void

The correct answer is: The amount in words

When the numerical amount on a check differs from the written amount, the amount written in words prevails. This principle is in place to reduce confusion and prevent fraud, as written words are generally considered more difficult to alter than numerical figures. In banking practices, when a discrepancy arises, the written amount is enforced because it represents the payer's intention more clearly. For example, if a check says "One Thousand Dollars" in words but shows "$1000" numerically, the words clarify that the payee is entitled to that amount, ensuring accuracy in the transaction. This approach prioritizes clarity and intent, maintaining the integrity of the financial instruments used. By recognizing this standard, banks ensure a consistent and reliable process when dealing with checks that may have discrepancies, thereby protecting both the issuer and the recipient from potential misunderstandings or fraudulent alterations.