Which of the Following Statements Is False

question 31

Multiple Choice

Which of the following statements is false?

• A) Companies that use Software-as-a-Service are running applications on the vendor's hardware.
• B) Application service providers are similar to Software-as-a-Service providers.
• C) Companies that purchase open-source software cannot modify it.
• D) Outsourcing refers to acquiring IT applications from outside contractors.
• E) Insourcing refers to building IT applications in-house.

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Definitions:

Income Taxes Payable

The amount of income tax a company owes to the government but has not yet paid.

Cash Paid

The total amount of money that has been disbursed or paid out by an individual or organization.

Direct Method

A method of preparing a statement of cash flows that shows operating cash receipts and payments, making it more consistent with the objective of the statement of cash flows.

Cash Collections

The process of gathering all cash received during a period, including sales revenues and other income.