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.

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Definitions:

Commissions

Fees or percentages earned by agents or companies for facilitating transactions or services.

Trade

The exchange of goods, services, or both between entities or regions.

Rich Nations

Countries with high levels of income per capita, advanced technological infrastructure, and a standard of living significantly above the global average.

Poor Nations

Countries characterized by low levels of income, limited industrial development, and often a low Human Development Index (HDI), facing challenges such as poverty, disease, and low life expectancy.