Hardware and Software Are the Only Costs of a New

question 26

True/False

Hardware and software are the only costs of a new information system.

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Definitions:

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Percentage of Sales Method

A financial forecasting model that bases future variables, like expenses and income, on a percentage of sales.

Matching Principle

A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses.

Uncollectible Receivables

Accounts receivable that a company does not expect to collect due to customers’ inability to pay, often written off as a bad debt expense.