Phil O'Keefe Is Opening a Small Sports Store in His

question 176

Multiple Choice

Phil O'Keefe is opening a small sports store in his town. At the advice of a friend who is a bookkeeper, he keeps the receipts of everything he purchases for the business in the bottom drawer of his desk, along with all other business expenses, such as his retail license, his rent expense, and insurance expense. You suggest that ________.

• A) Phil continue with this procedure, but only until the store opens, at which time he will need an additional drawer for his sales transactions.
• B) Phil invest some time in exploring an accounting system that will make it easier to classify and summarize accounting information.
• C) Phil continue with this procedure because there is very little difference between one expense and another.
• D) Phil stop wasting valuable time saving the receipts because accountants only record sales transactions.

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Definitions:

Automation

The total mechanization of a job.

Job Simplification

The process of breaking down jobs into their simplest components to improve efficiency and reduce complexity.

Highly Standardized

Pertains to products, processes, or systems that strictly adhere to established norms and specifications to ensure uniformity and consistency.

Rubber Hoses

Flexible tubes constructed from rubber used for conveying liquids or gases under pressure.