Hap Owns and Operates a Small Business with Only Four

question 92

Multiple Choice

Hap owns and operates a small business with only four full time employees and less than $500 thousand in annual sales.He currently uses a manual accounting system and relies on a part-time bookkeeper to keep his records in order.In evaluating the possible adoption of a computerized accounting system,Hap will probably discover that:

• A)the expense of setting up a computerized accounting system would be beyond his financial ability at this time.
• B)he would be better off hiring a full time accountant.
• C)he could benefit greatly from adopting such a system,but should also consult with an accountant for advice.
• D)a computerized system would be affordable,but that he would have little need for it unless his company grew and became significantly larger.

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Definitions:

Upholstery Supplies

Materials and tools used for covering furniture with fabric or leather to restore or upgrade its appearance.

Dairy Products

Foods or beverages that are produced from or contain the milk of mammals, such as cheese, milk, and yogurt.

Residential Subdivisions

A land area that has been divided into lots, typically for the purpose of building homes or other residential structures.

Disclosure

The act of revealing or making known information that was previously secret or unknown.