Oswen Technologies Inc

question 45

Multiple Choice

Oswen Technologies Inc.,a software developing company,spent a lot of money in advertising software products that were not in the market.However,the firm hoped to bring these products to the market at a later date.This is termed as _____.

• A) puffery
• B) vaporware
• C) first refusal
• D) advertising roll out

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, which can include loans, bonds, or lines of credit.

Lease Term

The lease term is the fixed, non-cancellable period of time for which a lease is taken out, including any options to renew that are reasonably certain to be exercised.

Loan Covenants

Clauses in a loan agreement that require the borrower to fulfill certain conditions or restricts certain activities to protect the lender.

Operating Lease

A lease agreement that allows the use of an asset but does not convey rights of ownership to the lessee; expenses are typically reported as operating expenses in the income statement.