Volatility Refers to a Device's Ability to Function with or Without

question 13

True/False

Volatility refers to a device's ability to function with or without power. RAM is volatile, meaning it must have constant power to function; its contents are lost when the computer's electric supply fails.

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Definitions:

Amortization

The gradual reduction of a debt or the allocation of the cost of an intangible asset over a period.

Cost Method

An accounting approach for investments where the investment is recorded at cost, and income is recognized only when dividends are received.

Retained Earnings

The portion of net income not distributed to shareholders but retained by the company for reinvestment or debt repayment.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.