Goodwill Impairment What Is the Two-Step Process Necessary to Evaluate the Impairment

question 39

Essay

Goodwill impairment
What is the two-step process necessary to evaluate the impairment of goodwill?

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Definitions:

Master Account

A primary account in financial management that holds funds or securities and from which transactions can be made.

Cash Management

The strategy of collecting, managing, and investing cash in a way that enables the company to meet its financial obligations while maximizing liquidity.

Lockbox System

A lockbox system is a banking service used by companies to expedite the collection and processing of accounts receivable by having checks mailed directly to a bank-operated address.

Collection Time

The average period that it takes for a business to receive payments owed, in terms of receivables, from its customers and clients.