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?

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Definitions:

Enema

The instillation of fluid into the rectum and colon.

Narcotic

A drug capable of producing sleep and relieving pain or inducing unconsciousness and even death, depending on the dosage.

Prescription

A written direction for the preparation of a medicine.

Suppository

A solid medical preparation designed to be inserted into the rectum, vagina, or urethra, where it dissolves or melts to exert a local or systemic effect.