A computer is a digital, electronic device capable of reading, processing and executing software designed for administrative and instructional uses. The term computer includes not only the main processing unit, but also expansion cards, upgrade devices and peripherals, such as: operating system software (ROM based), installable memory, processor upgrades, video boards, sound cards, network connectivity boards or cards, other expansions, upgrade devices, monitors, drives, plotters, modems, computer projection devices, adaptive hardware, and other minor peripherals that attach to the main unit.
The set of programs and associated documentation used to control the
operation of a computer. The two primary types of software are (1) systems
software which include operating systems, programming languages, and utility
programs; and (2) application programs that are designed to perform tasks such
as data base management, spreadsheet functions, instruction, and work
processing. Generally, when software is acquired with computer hardware for a
single purchase price and the relative value of the software is material to
the total cost it is necessary to allocate the acquisition cost to both the
software and hardware in accordance with general accepted accounting
principals for lump-sum or basket purchases.
However, systems software acquired in conjunction with computer
hardware may be recorded as part of the equipment purchase (no allocation of
cost to the software) when the software will not be. removed, transferred, or in any way separated from the
original hardware. In the event that software, which was originally recorded
as equipment is subsequently removed, transferred, or detached from the
original hardware, it would be necessary to retroactively allocate a portion
of the original cost, if material, to the software for proper recording of the
removal or transfer.
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