Winston Purchased a Word Processing Software Package for His Business

question 4

Multiple Choice

Winston purchased a word processing software package for his business. Which of the following statements is true?

• A)As owner of the software, Winston has the right to make as many copies as he wishes without worrying about copyright infringement.
• B)Winston has purchased a licence to use the software and may copy it onto his hard drive and make a reasonable number of back-up copies.
• C)Winston has purchased a licence of the software and may copy it onto his hard dive, making a reasonable number of back-up copies provided they are for his own use and the copying has been authorized by the author of the program.
• D)Winston has the right to copy the software onto his hard dive but not to make any back-up copies as the original software package purchased acts as a back-up copy.
• E)Winston has the right to make six back-up copies.

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Definitions:

Rent Expense

The cost incurred by a company to utilize property or equipment for business operations, typically recognized in the income statement.

Services Revenue

Income generated from the provision of services to clients or customers, distinct from the sale of goods.

Income Statement

An account that outlines a business's financial transactions, such as earnings, costs, and overall profit, for a defined timeframe.

Total Revenues

Total revenues refer to the full amount of income generated by a company from its business activities, including sales of goods or services, before any expenses are subtracted.