CRITICAL ACCOUNTING ESTIMATE Definition

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CRITICAL ACCOUNTING ESTIMATE is when a company must make assumptions about matters that are "highly uncertain" when the company makes the accounting estimate and either of the following conditions would have a material effect on the company's financial condition, changes in financial condition or results of operations: 1. the company could reasonably have used a different estimate for the current period; or, 2.changes in the estimate are reasonably likely to occur from period to period in the future.

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INTANGIBLE ASSET is an asset that is not physical in nature. Examples are things like copyrights, patents, intellectual property, or goodwill. An intangible asset is the opposite of tangible asset.

ACV see ACTUAL CASH VALUE.

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