COMPUTER SOFTWARE
TYPES OF SOFTWARE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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TRUE
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FALSE Software is tangible.
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Either A or B
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None of the above
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Detailed explanation-1: -Key Takeaways. While software is not physical or tangible in the traditional sense, accounting rules allow businesses to capitalize software as if it were a tangible asset. Software that is purchased by a firm that meets certain criteria can be treated as if it were property, plant, & equipment (PP&E).
Detailed explanation-2: -Such an asset is identifiable when it is separable, or when it arises from contractual or other legal rights. Separable assets can be sold, transferred, licensed, etc. Examples of intangible assets include computer software, licences, trademarks, patents, films, copyrights and import quotas.
Detailed explanation-3: -Hardware refers to the computer’s tangible components or delivery systems that store and run the written instructions provided by the software. The software is the intangible part of the device that lets the user interact with the hardware and command it to perform specific tasks.
Detailed explanation-4: -The factory equipment, computers, and buildings would all be tangible assets.
Detailed explanation-5: -Computer software is the most widely owned type of intangible capital asset.