Final answer:
The primary purpose of the proof of cash is to verify that all cash receipts recorded in the books were deposited in the bank, providing accuracy in financial reporting and improving cash management.
Step-by-step explanation:
The primary purpose of the proof of cash is to ensure that all cash receipts recorded in the cash receipts journal are deposited in the bank account. This process serves to cross-verify and reconcile the amounts entered in a company's books with the actual bank transactions, helping to discover any inconsistencies or irregularities that might indicate errors or fraudulent activities.
Regular proof of cash procedures contributes to accurate financial reporting and effective cash management, which are critical for sustaining the operational efficiency and integrity of businesses.