When Software Is Purchased,a _____ Is Being Bought That Gives

question 26

Multiple Choice

When software is purchased,a _____ is being bought that gives the purchaser the right to use the software under certain terms and conditions.

• A) fixed fee model
• B) request for proposal
• C) software license
• D) supplemental maintenance agreement

Identify and calculate operating cash flow, capital spending, and net working capital.

Comprehend the difference between current assets, fixed assets, and the implications for net working capital.

Grasp the importance of cash flow from assets and its components.

Recognize the types of costs associated with a firm and their impact on financial statements.

---

Definitions:

Canadian Corporations

Companies incorporated under the laws of Canada, subject to Canadian corporate regulations and taxation.

Cash Flow To Creditors

A firm’s interest payments to creditors less net new borrowings.

Long-Term Loan

A type of financing that is paid back over an extended time frame, extending beyond one year.

Capital Gains

The gain realized when the price at which an asset or investment is sold surpasses the price it was originally bought for.