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:

View

A specific perspective or angle from which an object, scene, or plan is depicted or visualized.

Symbol

A mark or sign used as a conventional representation of an object, function, or process.

Square

A shape or object having all four sides of equal length and all angles of 90 degrees; in mathematics, the product of a number multiplied by itself.

Parts Per Drawing

The quantity of components or parts depicted within a single drawing, indicating the number of pieces to be fabricated or assembled.