Question

Asset retirement obligations:
a. Increase the balance in the related asset account.
b. Are measured at fair value in the balance sheet.
c. Are liabilities associated with the restoration of a long-term asset.
d. All of these answer choices are correct.

Answer 1

Answer:

(D) All of these answer choices are correct.

Explanation:

Asset retirement obligation is related to the restoration of a substantial and long-term asset to a site. It is a legal obligation that is meant to account the expenses of restoring an asset to its original or previous condition. It as well Increases the balance in the related asset account is measured at fair value in the balance sheet.