A salesperson who uses a cash register to record over-the-counter sales should, at the end of each workday, turn over to a supervisor the cash register tape and a corresponding amount of cash.True or false
The correct answer and explanation is:
True.
At the end of each workday, it is standard practice for a salesperson who uses a cash register to record over-the-counter sales to turn over the cash register tape along with the corresponding amount of cash to a supervisor. This process helps ensure accurate accountability and financial control within the business.
The cash register tape serves as a record of all sales transactions processed during the day. It provides a detailed summary, including the number of sales, the total sales amount, and sometimes the method of payment. By matching the cash amount collected to the total shown on the tape, the supervisor can verify that the funds received correspond correctly to the sales recorded.
Turning over the cash register tape and cash daily minimizes the risk of errors, theft, or discrepancies going unnoticed. If the cash collected does not match the tape totals, it signals the need for immediate investigation. This practice also helps maintain transparency and fosters trust between employees and management.
Additionally, this procedure supports accurate bookkeeping and financial reporting. It allows the accounting department to reconcile daily sales data with the cash on hand, ensuring that financial records are correct and up to date. Regular cash accountability reduces the chance of financial losses and improves overall business management.
By requiring salespersons to hand over both the cash and the register tape daily, businesses establish a clear control system. It acts as an internal control mechanism to safeguard company assets and verify sales accuracy, ultimately supporting smooth operations and financial integrity.