Generally Accepted Accounting Principles Were Established by the American Accounting

question 1

True/False

Generally accepted accounting principles were established by the American Accounting Association in 1934 and are updated annually by Congress.

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Definitions:

Salvage Value

The forecasted remaining worth of an asset after its period of functionality has ended.

Replacement Parts

Components that are designed to replace original parts of a machine or system that have worn out or failed.

Commercial Substance

An occurrence in a transaction where the future cash flows or the economic circumstances of the involved parties change as a result.

Trade-In Allowance

The discount or credit granted for the return of an old item when purchasing a new one.