Which statement is false regarding cash handling practices?

Which statement is false regarding cash handling practices?

• A. It is best to handle as many transactions at a time as possible.
• B. It is best to always arrange currency, coins, and checks in a box or drawer in a consistent manner.
• C. Bank deposits or remittances to the city treasurer should be made daily.
• D. Each individual receiving payments should balance out his or her cash box or drawer each day.

Answer: (A)

A fundamental principle in cash handling is maintaining tight control by limiting how many transactions you handle in a single sitting. Handling a large number of transactions at once increases the chance of counting errors, misplacement, and opportunities for misappropriation, and it makes reconciliation much harder. The other practices support solid control: arranging currency, coins, and checks consistently makes verification quick and reduces miscounts; depositing funds daily minimizes cash on hand and exposure; and having each person who receives payments balance their own cash box every day ensures accountability and early detection of discrepancies.

A fundamental principle in cash handling is maintaining tight control by limiting how many transactions you handle in a single sitting. Handling a large number of transactions at once increases the chance of counting errors, misplacement, and opportunities for misappropriation, and it makes reconciliation much harder. The other practices support solid control: arranging currency, coins, and checks consistently makes verification quick and reduces miscounts; depositing funds daily minimizes cash on hand and exposure; and having each person who receives payments balance their own cash box every day ensures accountability and early detection of discrepancies.