Office Administrative Assistant Practice Exam

What does a special endorsement on a check allow the endorser to do?

1. Transfer the check to a specific person

2. Void the check

3. Deposit the check into their account

4. Authorize multiple payments

The correct answer is: Transfer the check to a specific person

A special endorsement on a check specifies that the check is being transferred to a specific individual or entity. This type of endorsement involves writing "Pay to the order of [specific person’s name]" along with the endorser's signature. By doing this, the original endorser allows the check to be cashed or deposited by the named person, effectively transferring the rights to the funds from the endorser to that individual. This process is distinct from other types of endorsements. For instance, a blank endorsement allows anyone in possession of the check to cash or deposit it, while a restrictive endorsement limits the use of the check to a specific purpose. Voiding the check, as suggested in one of the incorrect options, would completely cancel it, while depositing it into one's account does not require a special endorsement but can be done with a standard endorsement. Authorizing multiple payments is not relevant to the endorsements on checks as it pertains more to accounting or contractual agreements.