Mixed Deck — All CRCT Topics Flashcards

Under ADA requirements, transit fare payment equipment must be:

Answer: Accessible and operable by individuals with disabilities

The Americans with Disabilities Act mandates that all fare payment equipment and facilities be accessible to people with disabilities.

What document outlines internal financial procedures?

Answer: Financial procedures manual

A financial procedures manual is a critical document that formally outlines all internal financial policies, processes, and controls within an organization. It serves as a comprehensive guide for employees, ensuring consistency in financial operations, compliance with regulations, and providing a clear reference for audit trails and training.

Before closing and locking a revenue vault at the end of a collection, what should be verified?

Answer: That all contents are logged, sealed, and the vault is inspected as empty or properly loaded

Verifying contents are properly logged and the vault is in correct condition before closing ensures accountability and prevents disputes during reconciliation.

A 'tap-on/tap-off' fare system requires passengers to interact with fare readers at which points in their journey?

Answer: At both entry and exit

Tap-on/tap-off systems capture both the boarding and alighting points to calculate the correct fare for distance-based or zone-based pricing.

What is the primary function of a drop safe in a transit revenue collection environment?

Answer: To provide a one-way, secure deposit point for collected funds before formal vault processing

A drop safe provides a one-way secure deposit slot, allowing employees to secure funds without the ability to retrieve them, reducing internal theft risk.

A company is implementing a new system for processing customer payments received by mail. To strengthen internal controls, they decide to use a lockbox system. How does a lockbox system improve control over cash receipts?

Answer: It directs customer payments to a post office box controlled by the bank, which reduces employee access to cash.

A lockbox system is an internal control where customers mail their payments directly to a post office box that is managed by the company's bank. The bank then collects and deposits the payments directly into the company's account. This system significantly improves security by preventing company employees from having direct access to the cash and checks, thereby reducing the risk of theft or misappropriation.

A 'separation of duties' policy in revenue control is designed to:

Answer: Reduce fraud and error risk by requiring multiple individuals to handle each step

Separating duties ensures no single employee controls an entire revenue transaction from collection through reconciliation, reducing fraud opportunity and undetected errors.

A revenue control technician is performing a daily reconciliation of credit card transactions. They notice that the total amount deposited into the company's bank account from the payment processor is less than the total sales recorded in the point-of-sale (POS) system for that day. Which of the following is the most likely reason for this discrepancy?

Answer: The deduction of processing fees by the payment processor.

Payment processors charge fees for their services, which are typically deducted from the batch of transactions before the net amount is deposited into the merchant's account. This is a very common reason for differences between gross sales and net deposits during reconciliation. While the other options are possible, processing fees are an expected and regular part of the process.

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.

Which federal agency has primary oversight responsibility for grant compliance in transit revenue operations?

Answer: Federal Transit Administration (FTA)

The FTA administers federal transit grants and sets compliance requirements for revenue management, financial reporting, and internal controls.

When a farebox malfunctions during active service, the revenue control technician's first priority should be to:

Answer: Follow the agency's equipment failure protocol and document the incident

Equipment failures must be handled per established protocols to protect revenue integrity, ensure accurate reporting, and create an audit trail for the malfunction.

Which of the following is a key component of a financial control system?

Answer: Segregation of duties

Segregation of duties is a key component of a robust financial control system, designed to prevent fraud and errors by distributing critical financial tasks among multiple individuals. This ensures that no single person has complete control over a transaction from beginning to end, creating a system of checks and balances that enhances accountability and reduces risk.

Which of the following best defines a 'chargeback' in the context of credit card transactions?

Answer: A transaction reversal initiated by the cardholder's bank when the customer disputes a charge.

A chargeback is different from a merchant-issued refund. It is a formal dispute process started by the customer through their own bank (the issuing bank), which then forcibly reverses the funds from the merchant's account while the claim is investigated.

In transit fare systems, 'interoperability' refers to:

Answer: The ability of different transit systems' fare media to work across multiple agencies

Interoperability allows a single fare card or account to be used across multiple transit operators, reducing barriers for multi-agency travel.

A 'dead ticket' in transit fare collection refers to:

Answer: A ticket that has expired or been fully used

A dead ticket has no remaining value or trips — it has either expired, been used up, or otherwise deactivated and can no longer grant access.

Which report type provides a snapshot of financial performance?

Answer: Summary report

A summary report condenses large amounts of data into key figures and trends, providing a high-level overview of financial performance. It highlights essential information, allowing stakeholders to quickly grasp the current financial status without delving into granular details. This snapshot helps in rapid decision-making and performance evaluation.

What document typically establishes the internal controls framework governing a transit agency's revenue operations?

Answer: Revenue Control Policy Manual

A Revenue Control Policy Manual defines procedures, responsibilities, and controls for all aspects of fare collection and revenue handling.

What is the main benefit of a dual-custody requirement when transporting vault contents?

Answer: It ensures two witnesses are present, reducing opportunity for theft or misappropriation

Having two authorized personnel present during vault transport creates mutual accountability and significantly reduces the risk of internal theft.

A revenue audit of a hotel's front desk operations reveals that the same employee who checks guests in and collects cash payments is also responsible for preparing the daily cash deposit and reconciling the daily sales report. This situation indicates a significant weakness in which of the following areas?

Answer: Segregation of duties

Segregation of duties is a fundamental internal control principle aimed at preventing fraud and error. In this scenario, one individual has control over multiple phases of a transaction (custody of assets, recording, and reconciliation), which creates an opportunity for misappropriation of funds to go undetected.

Which of the following measures central tendency?

Answer: Mean

The mean is a measure of central tendency, representing the average of a dataset. It is calculated by summing all values and dividing by the number of values, indicating the typical or central value around which data points cluster. Variance and standard deviation measure data spread, while an outlier is an unusual data point.