Critical Thinking Questions Case 14-1 You Have Been Hired as a Consultant

question 93

Multiple Choice

Critical Thinking Questions Case 14-1 You have been hired as a consultant for a firm that advises large companies on the best ways to bring enterprise-wide technologies to bear on their day-to-day operations. Another firm in your portfolio has been using a lot of less advanced technologies for communication among its employees, including mail, faxes, and phone calls. If they are looking in particular to modernize and achieve more efficiencies, which of the following technologies are you likely to recommend?

• A) extranet
• B) VPN
• C) workflow application
• D) Web services

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Allowance for Doubtful Accounts

A contra-asset account that represents the amount of accounts receivable a company does not expect to collect.

Accounts Receivable

The money owed to a business by its customers for goods or services that have been delivered or sold but not yet paid for.

Allowance Method

An accounting technique used to account for bad debts, estimating uncollectible accounts as an expense to the income statement and reducing accounts receivable on the balance sheet.