The daily receipts total should equal which of the following?

The daily receipts total should equal which of the following?

• A. The total receipts should equal the cash box total plus the change fund.
• B. The total receipts should equal the cash box total.
• C. The total receipts should equal the cash box total minus the change fund.
• D. The total receipts should be independent of the cash box total.

Answer: (C)

Reconciling cash means separating the change fund from the money collected that day. The daily receipts total is the amount actually received during the day, which equals the cash box total at the end of the day minus the change fund that was kept in the box to make change. The change fund isn’t revenue; it’s cash you started with to provide change, so it should be set aside when determining receipts. For example, if the cash box total is $5,000 and the change fund is $500, the daily receipts total would be $4,500. Counting the change fund as part of receipts would overstate the day’s receipts. Saying receipts equal the cash box total ignores the need to subtract the float. Saying receipts are independent of the cash box total would defeat the purpose of the reconciliation.

Reconciling cash means separating the change fund from the money collected that day. The daily receipts total is the amount actually received during the day, which equals the cash box total at the end of the day minus the change fund that was kept in the box to make change. The change fund isn’t revenue; it’s cash you started with to provide change, so it should be set aside when determining receipts.

For example, if the cash box total is $5,000 and the change fund is $500, the daily receipts total would be $4,500.

Counting the change fund as part of receipts would overstate the day’s receipts. Saying receipts equal the cash box total ignores the need to subtract the float. Saying receipts are independent of the cash box total would defeat the purpose of the reconciliation.