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Basic Cash Control: Principles and Practices Exercises

  1. Exercise 1
  2. Exercise 2
  3. Exercise 3
  4. Exercise 4
  5. Exercise 5
Exercise Question
Principles & Practices Exercise 1

Where should you stamp endorse the check?

  1. Stamp endorse anywhere on the back of the check, as long as it clearly shows that it's endorsed to the UC Regents
  2. You should stamp endorse the check while you're still at the office
  3. Stamp in the specific place provided on the back of the check
Principles & Practices Exercise 2

What are the risks of having high amounts of cash on-hand at any one time?

  1. Temptation to commit a theft by an unscrupulous employee
  2. In case of a robbery, we lose lots of money
  3. Loss of bank interest earned on high dollar amounts
  4. Increased risk of physical harm to cash handlers
  5. All of the above
Principles & Practices Exercise 3

Suppose you ran a tape on your cash drawer against your receipts. You counted $374.32 cash in hand and your tape reported $379.54. What should you do next?

  1. Recount the entire cash drawer
  2. Double-check your tape entries to make sure you didn't transpose any amounts from the cash or checks
  3. Let it go. The difference is less than $6 and that is close enough
  4. Both a. and b.
Principles & Practices Exercise 4

After double-checking all your work, you discover that you actually are short the difference. What do you do now?

  1. Complete the appropriate deposit slip, while being very careful to document all the existing cash and checks.
  2. Document the difference, and report the loss to your supervisor. Then complete the appropriate deposit form/slip.
  3. Make a note of the cash difference at your station and call it a wash. Some days you're over and some days you're short. In the long run, it averages out.
Principles & Practices Exercise 5

Selma works for a high cash volume unit and she is responsible for reconciling accounts monthly. It occurs to Selma that there has been a possible pattern of discrepancies (differences) in which losses are shown. She wonders about them because she has been careful to hold the line cashiers responsible for balancing accounts daily. She reported previous losses to her supervisor, but no action was ever taken. Selma is suspicious of her supervisor's activities. What should she do?

  1. Document the losses and report it to the audit department.
  2. Document the pattern of losses so that she is not responsible and confront her supervisor with the evidence.
  3. Continue to stay alert for further patterns.