The Decline in Value of a Trademark Is Accounted for By

question 82

Multiple Choice

The decline in value of a trademark is accounted for by:

• A)depreciation.
• B)amortisation.
• C)deterioration.
• D)depletion.

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Definitions:

Goodwill

A non-physical asset that is recognized when one business buys another at a cost exceeding the fair market value of its net recognizable assets.

Goodwill

An intangible asset that represents the premium paid over the fair value of the net identifiable assets of a company during an acquisition.

Initial Value Method

An accounting method used to record investments at their acquisition cost.