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Financial & Managerial Accounting
Found in: Page 304
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Why should cash receipts be deposited on the day of receipt?

Answer

Depositing all receipts upon the arrival of receipt creates an independent record of how much cash was received and keeps a team member safe from personal use of the money for a while before depositing it.

See the step by step solution

Step by Step Solution

Step-by-Step SolutionStep 1: Meaning of Cash Receipt

A cash receipt is a printed form statement showing how much money got in a cash sale transaction. This receipt is duplicated and given to the customer, while one more duplicate is held for bookkeeping.

Step 2: Cash receipts be deposited on the day of receipt

Mostly the theft of money happens before making a record of the receipt. When a record is made, it is simpler to follow a theft. When possible, deposit all money receipts unblemished, ideally on the day they are more susceptible to misappropriation.

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