Computer Consultants Inc

question 14

Essay

Computer Consultants Inc., began business as an adviser to chains of retail stores. The company assisted the stores in the selection of hardware and the development of software used by retail chain stores. Later the company developed software and sold it to its customers. The company also began selling some of the equipment to the customers. That is, the company would bid on a job to purchase and install equipment and the software. The company has consistently reported its income by the cash method. At the end of the year, the company has substantial accounts receivables from clients and a small amount of inventory on hand. What advice can you offer the company regarding its accounting method?

---

Definitions:

Posterior Probabilities

The probabilities assigned to hypotheses or outcomes after taking into consideration the relevant evidence and the prior probabilities.

Malignant Cyst

A type of growth or tumor that can invade surrounding tissues and spread to other parts of the body, considered cancerous.

Benign Cyst

A non-cancerous cyst that is generally not life-threatening and can occur in various parts of the body, often not requiring removal unless it causes discomfort.

Diagnostic Test

A procedure used to identify the presence or absence of a condition, disease, or other biological marker.