Describe the CRAAP Test

question 5

Essay

Describe the CRAAP test.

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Definitions:

Business Combination

A transaction or event in which an acquirer obtains control of one or more businesses, usually involving the exchange of equity interests or cash.

Equity Method

An accounting technique used by a company to record its investment in another company based on the change in net assets of the investee, reflecting the investor's share of the earnings or losses.

Fair Market Value

The price at which a willing buyer and willing seller would transact, with neither being under any compulsion to buy or sell.

Net Book Value

The value of an asset after subtracting accumulated depreciation or amortization from its original cost.