Final answer:
The statement about the cashier being responsible for the petty cash fund rather than accounts receivable for better internal control is true. If an employee is wrongfully labeled a thief due to cash drawer shortages, they should request an investigation, understand the process, and communicate to clarify the situation.
Step-by-step explanation:
The statement about designating the cashier to be custodian of the petty cash fund is True. This is because, in terms of internal control, separating the duties of handling cash receipts and managing accounts receivable is important to prevent fraud and errors. The petty cash fund is a limited amount of cash on hand used for making small purchases, and when a cashier is responsible for it, they are handling a small, manageable amount of cash. However, accounts receivable involves managing incoming payments from customers and is typically more complex and has a greater financial impact.
In the scenario presented, if a cashier at a retail store is found with a short cash drawer repeatedly, and the employee is confronted and labeled as a thief, the accused employee has a right to defend themselves. In handling the label and suspicion, the employee should:
- Request a thorough investigation into the cash shortages, including a review of surveillance footage and transaction records.
- Seek to understand the cash handling process and identify any possible procedural mistakes that could have led to the shortage.
- Communicate openly with the employer, providing any information or evidence that may help clarify the situation and exonerate them from wrongful accusations.
By following these steps, the employee may prove their innocence and demonstrate that the cash shortage was not due to theft but possibly other factors such as errors in processing transactions or mismanagement of the cash register.