When an Intangible Asset Becomes Worthless

question 48

Multiple Choice

When an intangible asset becomes worthless,

• A)it should remain on the books at its existing carrying value.
• B)its remaining carrying value should be written off immediately as a loss.
• C)prior years' accounting records should be adjusted retroactively.
• D)its remaining carrying value should be amortized over 20 years.

---

Definitions:

Merchandise Balance

The difference in value between a country's imports and exports of goods.

Services Balance

The difference between a country's exports and imports of services.

Balance Of Trade

The difference between a country's exports and imports of goods.

Comparative Advantage

An economic principle that states that an entity (e.g., country, region, or individual) can produce a good at a lower opportunity cost compared to others, leading to more efficient trading possibilities.