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Quizzes > Business & Finance

Cash Handling Test for Employees

Quick, free money handling test to check accuracy and speed. Instant results.

Editorial: Review CompletedCreated By: Celebration YouthUpdated Aug 27, 2025
Difficulty: Moderate
Questions: 20
Learning OutcomesStudy Material
Colorful paper art illustrating a quiz on Employee Money Handling Knowledge Test

This cash handling test helps you practice making change, spot counterfeit bills, and follow store policy so you reduce register errors. For more practice, try the counting money quiz, build role-specific skills with a bank teller skills test, or review the basics with a banking skills test.

At the start of your shift, when you receive a cash drawer, what should you do first?
Begin processing customer transactions immediately
Deposit extra coins in the bank
Remove all high-value bills and store them separately
Count and verify the starting float matches the recorded amount
Counting and verifying the starting float ensures the drawer begins with the correct recorded amount and helps prevent discrepancies. This step confirms the cash drawer matches the system's opening balance before transactions begin.
Which method helps ensure accurate change when giving money back to a customer?
Hand all coins first, then the bills
Round the change to the nearest dollar
Count up from the purchase total to the amount tendered
Give change starting with the largest bills first
Counting up from the purchase total to the amount tendered helps you track each increment and reduces errors. It provides a systematic approach that ensures the customer receives the exact change owed.
Identify a valid security feature on a genuine U.S. banknote.
A distinctive banana-like scent
A watermark that matches the portrait when held to light
A colored holographic patch
An embedded plastic strip in the paper
A genuine U.S. banknote contains a watermark that mirrors the portrait when held up to light. This feature is difficult to replicate and is a key indicator of authenticity.
Which record should be updated immediately after each cash transaction?
Inventory checklist
Cash log
Employee timecard
Sales forecast report
Updating the cash log right after each transaction maintains real-time accuracy of your cash position. It ensures that every sale or refund is immediately recorded for reconciliation.
If your cash count is $500 but sales records show $520, what is the first step you should take?
Adjust the records to match the cash counted
Recount the cash in your drawer
Report the discrepancy to the police
Deposit $20 into the bank immediately
Recounting the cash rules out simple counting errors before taking further action. This step is essential to ensure that any discrepancy is genuine and not due to miscounting.
A customer pays $20 for a purchase totaling $13.75. How much change should you return?
$5.25
$6.25
$7.25
$6.35
Subtracting the purchase total of $13.75 from the $20 paid gives $6.25 in change. Accurate subtraction is crucial to avoid giving too much or too little.
A sale of $45.30 is paid with two $20 bills and one $10 bill. What is the correct change?
$6.00
$5.20
$4.70
$3.80
The customer paid $50 (2Ã-$20 + $10). Subtracting the sale total of $45.30 gives $4.70 in change. Precision in these calculations prevents financial errors.
Which step helps detect a counterfeit bill when processing cash?
Tap coins on the edge of the bill
Smell the bill for unusual odors
Check for the watermark by holding the bill to light
Fold the bill in half to see if the paper tears
Holding the bill to light to check for a watermark is a reliable method for verifying authenticity. That security feature is difficult for counterfeiters to replicate.
According to policy, if you suspect a bill is counterfeit, what should you do?
Return it to the customer and apologize
Exchange it for different denominations
Secure the bill and notify a supervisor immediately
Destroy the bill to avoid circulation
Company policy requires securing the suspicious bill and notifying a supervisor for proper handling. This maintains security and ensures compliance with legal guidelines.
How should electronic payment details be documented to maintain financial security?
List them under miscellaneous expenses
Only note the total at the end of the day
No documentation is needed for electronic payments
Record each electronic payment with date, amount, and transaction ID
Documenting date, amount, and transaction ID for each electronic payment ensures a clear audit trail. This practice upholds financial integrity and facilitates reconciliation.
If the cash drawer shows an overage of $15 at shift end, what is a likely cause?
You applied a discount incorrectly
You deposited extra coins without logging
You gave customers less change than owed
You recorded sales twice in the POS
An overage typically occurs when customers receive less change than they should, leaving extra cash in the drawer. Identifying the cause helps correct the procedure for future transactions.
A customer purchases $27.45 of goods with 7% tax. If they pay with $40, how much change should you return?
$10.53
$9.37
$10.63
$10.65
First calculate total: $27.45 Ã- 1.07 = $29.37. Subtracting from $40 gives $10.63 in change. Accurate rounding and multiplication are essential in tax-inclusive transactions.
How many standard coin rolls of nickels ($2 per roll) are needed to make $18?
10
9
8
7
Each roll of nickels equals $2. Dividing $18 by $2 per roll results in 9 rolls. Proper coin handling helps streamline end-of-day reconciliation.
To accurately record a cash refund of $15.50, you should:
Enter a negative cash transaction of $15.50 in the cash log
Add $15.50 to the cash log as income
Leave it unrecorded and adjust later
Record $15.50 under miscellaneous income
Recording a refund as a negative cash transaction maintains an accurate cash log and reflects the reduction in funds. Immediate and precise recording prevents ledger discrepancies.
When reconciling the cash drawer, you notice $5 in unlisted bills. What is the best corrective action?
Document the $5 overage, investigate possible causes, and inform a supervisor
Ignore it and balance to the nearest even amount
Modify the sales total to cover the extra $5
Deposit the extra $5 without noting it
Documenting the overage and notifying a supervisor ensures transparency and initiates an investigation into the cause. This maintains financial integrity and follows company protocol.
Your starting float is $150. You record cash sales of $123.45 and cash returns of $10.50 during your shift. What should your ending cash balance be before reconciliation?
$263.05
$262.95
$133.95
$172.95
Net cash sales equal $123.45 minus $10.50 returns, which is $112.95. Adding the $150 float yields an ending balance of $262.95. Accurate arithmetic is crucial for correct reconciliation.
You count 7 ten-dollar bills, 15 five-dollar bills, 20 one-dollar bills, and $18.25 in coins. What is the total amount of cash you have?
$183.25
$198.25
$175.25
$163.25
Seven $10s equal $70, fifteen $5s equal $75, twenty $1s equal $20, plus $18.25 in coins totals $183.25. Detailed breakdowns prevent miscounts in multi-denomination drawers.
Under UV light, a genuine U.S. $20 bill from series 2003 will display a security thread glowing what color?
Green
No glow
Blue
Red
On series 2003 $20 bills, the embedded security thread fluoresces green under UV light. This feature helps distinguish genuine currency from counterfeits.
According to company policy, if you incur a daily cash shortage exceeding $50, what action is required?
Cover the shortage out of your own wages
Complete a discrepancy report and obtain a manager's review and signature
Ignore it if it happens only once
Adjust the shortage against petty cash without notification
Policy mandates that shortages over the threshold must be documented in a discrepancy report and reviewed by a manager. This ensures accountability and proper investigation.
Your petty cash fund is $100. After expenses of $72.35, the fund contains $27.65. To replenish it, which journal entry is correct?
Debit Cash $27.65 and Credit Expense Accounts $27.65
Debit Cash $72.35 and Credit Petty Cash $72.35
Debit Expense Accounts $72.35 and Credit Cash $72.35
Debit Petty Cash $100.00 and Credit Expense Accounts $27.65
Replenishing petty cash requires recording expenses for $72.35 (debit) and reducing the cash account by $72.35 (credit). This restores the fund to its original level and accurately tracks expenses.
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Learning Outcomes

  1. Identify correct cash handling and reconciliation procedures
  2. Calculate accurate change and transaction totals in practice scenarios
  3. Detect and respond to counterfeit or fraudulent currency
  4. Apply company policies to uphold financial security and integrity
  5. Demonstrate precise recording of monetary transactions
  6. Evaluate discrepancies and implement corrective measures

Cheat Sheet

  1. Master the 'Count Up' Method for Giving Change - Start from the purchase amount and count up to the cash given to guarantee accurate change and superhero-level confidence. For example, if the total is $7.50 and the customer hands you $10, say "50¢ to $8, then $2 to $10." This fun habit minimizes mistakes and makes every customer feel like a VIP.
  2. Understand the Importance of Segregation of Duties - Split cash collection, recording, and reconciliation between different teammates to build a fortress against errors and fraud. Think of it as assembling a cash-handling dream team where no single player has all the power. This core control measure keeps your money safe and your practice rock-solid.
  3. Recognize Security Features in U.S. Currency - Play detective by spotting color-shifting ink, watermarks, and security threads in your bills. Tilt a $20 and watch the "20" shimmer from copper to green - instant proof you're dealing with the real deal. Mastering these tricks keeps counterfeiters on their toes.
  4. Implement Proper Cash Handling Procedures - Always issue receipts, never dip into your own wallet for change, and lock up cash when you step away. These habits create an unbreakable chain of accountability and protect both you and your organization. Consistency is key to staying on top of your game.
  5. Utilize Counterfeit Detection Tools - Arm yourself with detection pens that react to starch in regular paper but stay cool on genuine bills. Pair this tool with fingerprint gadgets and UV lights for a counterfeit-fighting dream team. Stay sharp, because the bad guys never quit!
  6. Maintain Accurate Transaction Records - Log every sale immediately using pre-numbered receipts or a trusty cash register to avoid mystery shortages. Think of yourself as a cash-reporting rockstar whose meticulous ledger brings clarity to every penny. Accurate records mean smooth audits and happy managers.
  7. Secure Cash and Cash Equivalents - Stash money in locked safes or drawers and grant access only to authorized vault guardians. Change combinations on the regular and keep keys under lock and key to thwart sneaky hands. A locked drawer is your money's best friend!
  8. Conduct Regular Reconciliations - Play financial detective by matching daily cash receipts to recorded sales and nailing down any discrepancies on the spot. This habit zeroes out those "uh-oh" moments and keeps your accounts balanced to the cent. Consistency here is your secret weapon.
  9. Follow Company Policies for Financial Security - Embrace your organization's cash-handling playbook like a pro athlete studying game film. Adhering to established procedures for reporting and security upholds your team's integrity and keeps everyone playing fair. Policies are here to help you shine!
  10. Stay Informed About Counterfeit Detection Techniques - Keep your skills fresh with regular training on the latest spoof-spotting strategies from top institutions. The counterfeit game evolves, so your knowledge must too - be the first line of defense against fake bills. Lifelong learning keeps you one step ahead.
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