Which statement is not a cash control practice?

• A. Every Transaction Must Record a Cash Register Tape
• B. Daily Cash Deposits in the Bank
• C. Avoid Daily Reconciliation of Cash Balances
• D. Independent Verification of Cash Balances

Answer: (C)

Cash handling relies on timely, accurate recording, prompt safeguarding of funds, and independent verification to prevent errors and theft. Recording every cash transaction with a cash register tape creates a traceable record that can be compared to totals later. Daily deposits in the bank reduce the amount of cash kept on hand and provide a clear paper trail. Independent verification of cash balances adds a separate check to catch any mistakes or misappropriation. Daily reconciliation ties these elements together by ensuring the cash on hand matches the recorded amounts, so discrepancies can be found and addressed promptly. The statement that is not a cash control practice is avoiding daily reconciliation, because skipping reconciliation weakens the system and makes it easy for errors or theft to go unnoticed.