Final answer:
Activity managers usually make deposits to the central cashier or financial institution on a daily basis to minimize cash on hand, ensuring financial security, accuracy, and improved cash flow management.
Step-by-step explanation:
Activity managers typically make deposits to the central cashier or financial institution daily to keep cash on hand to a minimum. This practice is essential to reduce the risks associated with holding cash, such as theft or mismanagement, and to ensure better cash flow management. Because daily operations in many businesses involve cash transactions, it's crucial to deposit these funds regularly to maintain financial security and accuracy.
Furthermore, daily deposits assist in providing accurate financial records and facilitate timely reconciliation with accounting records. In high-volume cash businesses, such as retail stores, restaurants, or events, the frequency of deposits may be even more frequent than once daily, depending on the business policy and the amount of cash handled.