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Producers of Computer Software Are Plagued with the Problem of "Pirating

question 172

Multiple Choice

Producers of computer software are plagued with the problem of "pirating," that is, many people copy software legally purchased by others.The industry estimates that for each legal copy of a program, there are two pirated copies in use.The industry wants strict laws for the enforcement of its "intellectual property rights," but enforcement is obviously very difficult.Economists call this problem

Understand the classification and recording of different types of contributions in not-for-profit organizations.

Comprehend the accounting methods (deferred contribution and restricted fund method) for contributions and investment income in not-for-profit organizations.

Recognize how donated goods and capital assets should be accounted for in financial statements.

Understand how endowment contributions and their investment income are presented and used within financial statements.

Definitions:

Labor Income

Earnings derived from work or employment, including wages, salaries, commissions, and bonuses.

Budget Line

A graphical depiction in economics that shows all possible combinations of two goods that can be purchased with a fixed amount of income.

Tax Rate

The percentage at which an individual or corporation is taxed.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization.