How Often Are Major Software Changes Typically Made to ERP

question 21

Multiple Choice

How often are major software changes typically made to ERP?

• A) Every 12 months
• B) Every 1 to 2 years
• C) Every 3 to 5 years
• D) Every 5 to 10 years

Compute cash received from customers and cash payments for merchandise and operating expenses.

Determine free cash flow and understand its significance for business operations.

Apply knowledge of accounting principles to analyze changes in balance sheet data over a period and their impact on cash flows.

Distinguish the effects of buying and selling equipment on cash flows.

---

Definitions:

Contra Account

An account used in a general ledger to reduce the value of a related account when the two are netted together.

Compensatory Stock Options

Stock options given to employees as part of their compensation package, allowing them to purchase company stock at a discount in the future.

Convertible Preferred Stock

A type of preferred stock that holders can convert into a specified number of shares of the issuing company's common stock.

Unrecognized Compensation Cost

Expenses for employee compensations that have been incurred but not yet reported in the financial statements due to accounting rules.