Q8RQ - Horngren'S Financial And Managerial Accounting

Question

How do businesses control cash receipts over the counter?

Step-by-Step Solution

Answer

Cash receipts are controlled with the help of a point-of-sale terminal.

Step 1: Definition of cash receipt

Cash receipts are the receipt that records the cash that the company receives. These receipts are immediately sent to the bank after they are received.

Step 2: Businesses control cash receipt

Businesses control the cash receipts over the counter with the help of the point-of-sale terminal. A company records all the cash receipts in the cash register which helps in the cash receipts over-the-counter control. In this way, a company controls the cash receipts.