Developers of Freeware Rely on the Honor System, Trusting Users

question 149

True/False

Developers of freeware rely on the honor system, trusting users to send payment if software use extends beyond the stated trial period.

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Definitions:

Cost Of Goods Sold

The total cost directly involved in producing goods or services, including materials and labor.

Net Income

The amount of money left after all expenses, taxes, and costs have been subtracted from a company's total revenue.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Phantom Profits

Profits recorded in the accounting books but not actually realized through cash transactions, potentially leading to a misleading financial condition.