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One Form of Software Theft Is the Theft of the Software

question 160

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One form of software theft is the theft of the software from software manufacturers, which is known as piracy. Because this has historically been rather easy to do, the practice has become very common. As a computer instructor you feel it is your responsibility to explain this practice to students through the use of some examples.
Which of the following is NOT permissible under a single-user license agreement?


Definitions:

Allowance for Doubtful Accounts

A contra-account reducing accounts receivable to reflect the estimated portion that may not be collected.

Uncollectibles

Debts owed to a company that are considered unlikely to be paid and are therefore written off as a loss.

Income Statement Approach

A method to prepare the bad debt expense by estimating uncollectible accounts at the end of each period based on expected losses.

Accounts Receivable

Represents the money owed to a company by its customers for goods or services delivered on credit.

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