When an Asset Retirement Obligation is first recognized,the liability account is credited and Accretion Expense is debited.

Question

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When an Asset Retirement Obligation is first recognized, the liability account is credited, and the corresponding debit is made to the asset account, not to Accretion Expense. Accretion Expense is recognized over time as the liability increases due to the passage of time.

When an Asset Retirement Obligation Is First Recognized,the Liability Account