Which statement is true about cheque payments?

Which statement is true about cheque payments?

• A. A cheque must be signed to be valid
• B. The payee name must always be different from the account holder
• C. The cheque date is optional
• D. Amount in words is irrelevant

Answer: (A)

Signing the cheque is the key requirement for validity. The drawer’s signature authorizes the bank to transfer the specified funds to the named payee, so without a signature there’s no signed instruction for the bank to act on. That’s why this statement is true: a cheque must be signed to be valid. Think about the other points to see why they don’t hold as general rules. The payee can be the account holder or someone else—the payee name does not have to be different from the account holder. The date should normally be written on a cheque to show when it was issued and to avoid confusion or delays; a blank date isn’t standard practice. The amount written in words is important, not irrelevant—it serves as a check against tampering with the numeric amount and helps confirm the intended sum.

Signing the cheque is the key requirement for validity. The drawer’s signature authorizes the bank to transfer the specified funds to the named payee, so without a signature there’s no signed instruction for the bank to act on. That’s why this statement is true: a cheque must be signed to be valid.

Think about the other points to see why they don’t hold as general rules. The payee can be the account holder or someone else—the payee name does not have to be different from the account holder. The date should normally be written on a cheque to show when it was issued and to avoid confusion or delays; a blank date isn’t standard practice. The amount written in words is important, not irrelevant—it serves as a check against tampering with the numeric amount and helps confirm the intended sum.