__________ Conversion Is the Least Expensive and Highest Risk IS

question 16

Multiple Choice

__________ conversion is the least expensive and highest risk IS conversion strategy because the old system is cut off and the new system is turned on at a certain point in time.

• A)Parallel
• B)Direct
• C)Pilot
• D)Phased

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Definitions:

Straight-Line Amortization

A method of allocating the cost of an intangible asset evenly over its useful life.

Fiscal Year

A fiscal year is a 12-month period used for accounting purposes and preparing financial statements, differing from a calendar year.

Bonds Payable

A liability account in a company's balance sheet representing the amount it owes on issued bonds that have not yet been repaid.

Interest Expense

The cost incurred by an entity for borrowed funds, which is considered a non-operating expense on the income statement.