You need to come up with a reasonably concise representation for the program
state that allows you to easily restore from the state. This varies from
application to application. Others have explained where to put this state,
and of course, the choice varies depending on the size of your
representation.
In games, for example, it is often tempting to store a bitmap for the
current state of the screen. This is over 25K on a color device, and is
therefore best avoided. Instead, storing things like player position, level
number, etc is probably better.
For more traditional apps, storing the current form, the scroll position and
selection of forms, etc is typical. In this case, it's small enough that
using a preference is probably best. For this purpose, an unsaved preference
is preferred because in the unlikely event that your device has to be
restored after a hard reset, you probably don't care whether the app
remembers where you were in the app.
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