1-21 Evolution of Accounting Systems You recently opened a bicycle repair shop, using the family garage as your place of business. 1. You are self-employed. You buy parts for cash and render service for cash. How much accounting data would you collect? William R. Fair, "The Next Step in Management Controls," in Donald G. Malcom and Alan J. Rowe, eds., Management Control Systems (New York: John Wiley & Sons, Inc., 1960). pp. 229-30.

2. You buy parts on credit and you extend credit to some customers. How much accounting data would you collect? 3. You wonder how business is progressing this month versus last month and this year versus last year. How much data would you collect? 4. You wonder how well you have done this year versus what you budgeted for this year. How much data would you collect? Why might you prefer the approach in (4) to the approach in (3)?