Hardware Is the Physical Components Used to Process Data and Software

question 43

True/False

Hardware is the physical components used to process data and software is the computer programs that direct all hardware components to solve problems and thus derive useful practical solutions.

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Definitions:

Retained Earnings

Profits generated by a company that are not distributed to shareholders as dividends but are kept as reinvestment in the company or to pay off debt.

Fair Value

What one would receive for selling an asset or pay to transfer a liability in a structured deal among those active in the market at the point of measurement.

Full Goodwill Method

An accounting method that recognizes goodwill based on the full fair value of a subsidiary, not just the portion acquired by the parent company.

Non-controlling Interest

A minority stake in a company that is not enough to control company decisions, represented as a separate component of equity in the consolidated financial statements.