National Check Professional (NCP) Certification Practice Test

A late return claim is associated with which adjustment type?

1. LC adjustment

2. PAID adjustment

3. NCH adjustment

4. ENC adjustment

The correct answer is: LC adjustment

A late return claim is associated with an LC adjustment, which stands for "Late Check" adjustment. This type of adjustment occurs when a check is not returned to the presenting bank within the specified time frame, typically due to delays in processing or errors. The LC adjustment is important because it addresses situations where checks that should have been returned are instead processed later than expected, impacting both the financial records of banks and the parties involved in the transaction. In contrast, the other adjustment types serve different purposes. A PAID adjustment refers to checks that have been processed and marked as paid, focusing on the accuracy of payment transactions. An NCH adjustment relates to transactions governed by the National Clearing House, often dealing with specific nuances in bank transfers. Lastly, an ENC adjustment pertains to electronic check payments, which involve different protocols than traditional paper checks. Each adjustment type has its distinct implications within the check processing landscape, making the LC adjustment the appropriate answer for late return claims.