NHA Certified Clinical Medical Assistant (CCMA)Administrative TasksMedium
A medical assistant is responsible for reconciling the daily cash drawer at the end of the shift. The starting cash balance was $150. Throughout the day, the clinic collected $1,250 in cash payments and disbursed $35 for petty cash expenses. The final count of cash in the drawer is $1,360. Which of the following describes the status of the cash drawer?
- AThe cash drawer is over by $25.
- BThe cash drawer is short by $5.
- CThe cash drawer is balanced.
- DThe cash drawer is over by $5.
Show answer & explanationAnswer & explanation
Correct answer: A. The cash drawer is over by $25.
To determine the status, calculate the expected cash: Starting cash ($150) + Cash collected ($1,250) - Petty cash disbursed ($35) = $1,365. The actual cash is $1,360. Therefore, the drawer is short by $1,365 - $1,360 = $5.
Why the other options are wrong
- B. This is the correct calculation. Expected cash: $150 (start) + $1250 (collected) - $35 (disbursed) = $1365. Actual cash: $1360. Difference: $1365 - $1360 = $5. The drawer is short by $5.
- C. The cash drawer is not balanced as there is a discrepancy of $5.
- D. This calculation is incorrect. The drawer is short by $5, not over.
Cash Drawer Reconciliation
The process of verifying that the amount of cash in the drawer at the end of a period matches the expected amount based on starting balance, cash receipts, and disbursements.
- Ensures accuracy of financial transactions.
- Helps identify discrepancies (overages or shortages).
- Calculated as: Starting Cash + Receipts - Disbursements = Expected Cash.
- Discrepancies require investigation to identify the cause.
Memory trick: Reconcile the drawer to 'SEE' if the money is where it should be.