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Chapter 33 – Exercises & Cases

Multiple Choice Questions​

  1. The most important software selection criterion for Luxembourg businesses is: a) Cost b) PCN compliance c) Ease of use d) Cloud vs. on-premise Answer: b) PCN compliance is mandatory and most important.

  2. Sage BOB is: a) Open-source software b) Luxembourg-specific accounting software c) Only for large businesses d) Not PCN compliant Answer: b) Sage BOB is Luxembourg-specific accounting software with PCN compliance.

  3. Odoo community edition is: a) Paid software b) Free open-source software c) Only for large businesses d) Not customizable Answer: b) Odoo community edition is free open-source software.

  4. Excel for accounting is: a) Recommended for all businesses b) Suitable for very small businesses only c) Fully PCN compliant d) Has eCDF integration Answer: b) Excel may be suitable for very small businesses only, but has limitations.

  5. Cloud software advantages include: a) Lower upfront cost b) No internet required c) Full control over system d) One-time payment Answer: a) Cloud software has lower upfront cost (subscription-based).

  6. Data migration should be: a) Done without planning b) Planned and tested c) Done manually only d) Skipped if possible Answer: b) Data migration should be planned and tested thoroughly.

  7. Bank integration allows: a) Manual entry only b) Automatic transaction import c) No reconciliation d) Offline access only Answer: b) Bank integration allows automatic transaction import.

  8. Backups should be: a) Done monthly b) Done daily for active businesses c) Not necessary d) Done only once Answer: b) Backups should be done daily for active businesses.

  9. Data must be retained for: a) 5 years b) 7 years c) 10 years d) 15 years Answer: c) Data must be retained for 10 years (Luxembourg requirement).

  10. Software integration helps: a) Only reduce costs b) Only save time c) Reduce costs, save time, and improve accuracy d) Only improve security Answer: c) Software integration helps reduce costs, save time, and improve accuracy.

Questions​

  1. What are the essential software selection criteria for Luxembourg businesses? Why is PCN compliance critical?

  2. Compare Sage BOB and Odoo. What are the advantages and disadvantages of each?

  3. When might Excel be appropriate for accounting? What are the limitations?

  4. Explain the differences between cloud and on-premise software. What factors should influence the choice?

  5. What are the key steps in data migration? Why is planning important?

  6. How does software integration improve efficiency? What integrations are most valuable?

  7. What are the backup and security requirements for accounting software? Why are they critical?

  8. Explain the importance of data security. What measures should be implemented?

  9. What is total cost of ownership? Why is it important when selecting software?

  10. How should businesses prepare for software implementation? What are the key considerations?

Note: Complete solutions are available in the solutions manual.

End of Chapter 33 Exercises