Which of the Following Is Not True Regarding a Software

question 30

Multiple Choice

Which of the following is not true regarding a software package at the entry-level, such as Quickbooks:

• A)It is likely to cost a few thousand dollars to implement it fully
• B)It is scalable
• C)It is unlikely to incorporate Internet connectivity
• D)It is suitable for many businesses with less than $5 million in revenues
• E)It will include sample, customizable Charts of Accounts

Identify the correct accounting treatment for gains resulting from the retirement of intercompany bond holdings.

Prepare eliminating journal entries for intercompany bond transactions in the consolidated financial statements.

Understand the concept and implications of restricted shares in a business context.

Comprehend the financial treatment and implications of acquiring preferred and common shares by a parent company in a subsidiary.

---

Definitions:

Plowback Ratio

Plowback Ratio, also known as the retention ratio, is the proportion of earnings that a company retains and reinvests in its operations, rather than distributing as dividends.

Expected ROE

The anticipated return on equity, which measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Market-capitalization Rate

The discount rate derived from the market capitalization of a company, used to determine the present value of its future earnings.

Product Life Cycles

The stages through which goods typically go through from development to withdrawal from the market, including introduction, growth, maturity, and decline.