Cash Handling Procedures Flashcards
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Read the first 6 Cash Handling Procedures flashcards as text
A revenue control technician is balancing a cash drawer at the end of their shift. The point-of-sale (POS) system report shows total cash sales of $1,575. The starting float was $200. The actual cash counted in the drawer is $1,785. What is the correct procedure to follow?
Answer: Recount the cash, re-check the POS report, and if the discrepancy persists, document and report the $10 overage.
The first step in any discrepancy is to verify the counts and reports. If an overage of $10 ($1,785 actual - $200 float - $1,575 sales) is confirmed, it must be properly documented and reported to management according to company policy. The other options represent procedural violations or assumptions that are not part of standard cash handling.
Which of the following is the PRIMARY reason for assigning a single employee to each cash drawer per shift?
Answer: To establish clear accountability and simplify discrepancy resolution.
Assigning one person to a cash drawer creates direct responsibility for all funds in that drawer. This practice is a fundamental internal control that makes it much easier to identify the source of any shortages or overages.
In cash handling terminology, what does the term 'float' refer to?
Answer: A fixed amount of cash placed in a register at the start of a shift for making change.
The 'float' or 'starting bank' is the initial, verified amount of cash, including various denominations of coins and bills, that a cashier starts their shift with. It is used to provide change to customers before a significant amount of cash from sales has been accumulated.
When an armored car service arrives to pick up a scheduled cash deposit, what is a critical step the revenue control technician must perform?
Answer: Verify the credentials of the armored car personnel and obtain a signed receipt for the transfer of custody.
Security and accountability are paramount during a transfer to an armored courier. The technician must always verify the identity of the personnel and ensure a documented chain of custody is established by getting a signed receipt or manifest. This document is proof that the deposit was transferred.
A customer pays with a $50 bill that feels slightly unusual. Which of the following is a recommended manual technique for verifying the bill's authenticity without specialized equipment?
Answer: Hold the bill up to a light to look for a watermark and a security thread.
Modern currency has several security features that can be checked manually. Holding the bill up to a light source will reveal a faint watermark image of the portrait and a thin security thread embedded in the paper. These features are difficult for counterfeiters to replicate accurately.
To minimize the risk of error and deter theft during the deposit preparation process, which internal control practice is most effective?
Answer: Requiring two individuals to be present, with one counting the cash and the other verifying the count.
The principle of dual control, or having two people involved in the cash counting and verification process, is a strong internal control. It creates a system of checks and balances, significantly reducing the opportunity for both unintentional errors and intentional theft to go undetected.