Final answer:
The main answer to the techniques for controlling cash lies in balancing checkbooks, utilizing bank accounts for storing and accessing funds, and understanding liquidity. These practices can help prevent accusations of financial impropriety and ensure that cash management is handled securely and effectively.
Step-by-step explanation:
The common techniques employed to control cash include balancing your checkbook, using banks for depositing funds, and understanding liquidity. For example, if an employee working as a cashier at a retail store has their cash drawer repeatedly coming up short, it could lead to an accusation of theft. The employee must then demonstrate cash control techniques such as ensuring the cash drawer is balanced correctly, tracking transactions carefully, and possibly even learning to manage the reconciliation process of their transactions to clear up any misunderstandings. Banks facilitate these processes by allowing for storage and easy withdrawal of funds, which is less risky and more convenient than handling physical cash. Specifically, banks provide checking accounts and savings accounts that enable customers to manage their funds through direct withdrawals, writing checks, or using a debit card. Balancing a checkbook regularly is key to managing money and avoiding overdraft fees. Also, understanding different levels of liquidity helps in making informed cash management decisions, as the ease of converting an asset to cash without loss of value is crucial.Conclusion: Proper cash management techniques and the use of banking services are essential in preventing misunderstandings and keeping financial transactions secure and smooth. By utilizing these methods, individuals and businesses can better control their cash flow and maintain good financial health.