Under U.S. GAAP, what is the expense resulting from the increase in the carrying amount of an asset retirement obligation?
A) contingent expense
B) accretion expense
C) vested expense
D) depletion expense

Question

Quizplus · Accepted Answer

Under U.S. GAAP, the increase in the carrying amount of an asset retirement obligation is recognized as accretion expense. This reflects the passage of time and the increase in the liability's present value.

Under US GAAP, What Is the Expense Resulting from the Increase