Receipts should be balanced daily.

• A. Receipts should be balanced daily.
• B. Receipts should be balanced weekly.
• C. Receipts should be balanced monthly.
• D. Receipts should never be balanced.

Answer: (A)

Balancing receipts daily ensures that the amount of cash and checks received matches what’s recorded in the system by the end of each day. This immediate check keeps the cash drawer accurate, supports prompt and accurate deposits, and creates a clear, auditable trail for day-to-day revenue. It also strengthens internal controls by catching errors or miscounts early and helping detect potential misappropriation before problems grow. If balancing were done weekly or monthly, discrepancies could go unnoticed for too long, making reconciliation harder and increasing risk. Never balancing would abandon essential verification entirely, which is contrary to sound financial management and compliance expectations.