CAF-1 · Chapter 12 · Question 12 of 15
If a business owner suspects that an employee has been stealing cash from the till, which account should the accountant reconstruct to find the missing 'stolen' figure?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Cash/Bank account.
Explanation
To determine missing cash (e.g., from theft or unrecorded drawings), an accountant reconstructs the Cash/Bank account by mapping all known cash inflows and outflows. The unexplainable shortfall represents the stolen amount.
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