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Accounting
NSF Check
A check that bounces because the person who wrote it didn't have enough money in their account (Not Sufficient Funds).
When an NSF check comes back, you record it as a reduction in cash and usually add a bank fee. You also have to go back to the customer and ask for real payment.It's like getting a fake $20 bill that turns out to be Monopoly money when you try to spend it.
Real world: A customer pays you with a check for $800, you deposit it, but the bank later says 'NSF' and takes the money back out of your account.
💡 Always wait a couple days before spending money from a big check — NSF checks can quietly steal cash from your books.