Study the following cheque and cheque counterfoil, then refer to the cheque and cheque counterfoil to answer the questions below.

Here are the answers to the questions based on the cheque and counterfoil:

a) The drawee is the bank on which the cheque is drawn.

• EG Bank

b) The drawer is the person who issues the cheque.

• MS Parker

c) The payee is the person or entity to whom the cheque is payable.

• Chirpy Stores

d) The source document is the original record of a transaction.

• Cheque

e) MS Parker cannot make an alteration on the cheque without initialing the change. Any alteration without the drawer's initials would invalidate the cheque.

• No, not without initialing the alteration.

f) This is an order cheque. An order cheque is made payable to a specific person or entity, in this case, Chirpy Stores.

• Order cheque, because it is made payable to a specific entity, "Chirpy Stores".

g) The advantage of crossing a cheque is that it can only be deposited into a bank account and cannot be cashed over the counter. This increases the security of the payment.

• It ensures the cheque can only be deposited into a bank account, not cashed over the counter, increasing security.

h) No, this cheque cannot be cashed over the counter by just anyone. As an order cheque, only the payee (Chirpy Stores) can deposit it into their account or, in rare cases, cash it after strict identity verification by the bank.

• No, because it is an order cheque made out to "Chirpy Stores".

i) A cheque is considered stale if it is presented for payment after a certain period (usually 6 months) from its date of issue.

• The cheque date is 28 March 20.5.
• It will become stale 6 months after this date.
• A stale cheque is one presented for payment after a specified period (usually 6 months) from its issue date. This cheque will become stale on 28 September 20.5.

j) Two ways to make payment on this cheque more secure are: 1. Crossing the cheque with "Account Payee Only" between two parallel lines. 2. Ensuring the amount in words and figures match exactly to prevent alteration.

• As the owner of my own business, I would use internet banking. It offers greater convenience, faster transaction processing, and enhanced security features like two-factor authentication, reducing the risk of physical cheque fraud, loss, and the need for manual reconciliation.
• Two ways: 1. Crossing the cheque with "Account Payee Only". 2. Ensuring the amount in words and figures match. Yes, I would use internet banking for its convenience, speed, and enhanced security features.