Appendix I
Review Exercise Solutions
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Chapter 10 Review Exercise—Solutions
Review Exercise 1
Recommendations for Cash Controls
Record cash immediately when received
• Use sequential pre-numbered receipts.
• Purchase and use a cash register.
• Compare and reconcile the sum of sales amounts (office copy) to the cash on hand (cash drawer
or cash register copy).
Protect cash when it is on the premises
• Lock the cash drawer or cash register when not in use.
• Remove the cash from the cash drawer or cash register at night. Lock it in a safe, or the office.
• Create a customer policy of free cleaning if no receipt is given by the counter clerk.This ensures
the customer is always given a receipt when they pay cash.
Remove cash from the premises as soon as possible
• Deposit cash into the bank daily, multiple times if necessary.
Overall Goal for Cash Controls
• The overall goal for cash controls is to ensure that the amount of cash received is the amount
of cash recorded, which is the amount of cash deposited.
Recommendations for Clean 4U
• Contact authorities to report the counter clerk for fraudulent activities and theft, and provide
information for their investigation.
• Terminate the employment of the counter clerk.
• JP can step in as the counter clerk until another employee is found.
