Define the Following Terms

question 21

Essay

Define the following terms:

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Definitions:

GAAP

Generally Accepted Accounting Principles, a framework of accounting standards, principles, and procedures used in the United States.

Impairment Testing

The process of evaluating the recoverability of the carrying amount of an asset or cash-generating unit to ensure it does not exceed its recoverable amount.

Present Value

The present worth of a future sum or series of cash flows when calculated using a given return rate.

Intangible Asset

An asset that lacks physical substance but is identifiable and provides future economic benefits.