Asset retirement obligations are ________.
A)present value of future resource usage
B)obligations to replace old buildings and equipment with new assets
C)sinking funds for bonds or other long-term liabilities
D)long-term legal requirements to restore property

Question

Quizplus · Accepted Answer

Asset retirement obligations refer to the legal requirement of a company to restore or remediate a property once an asset is retired or taken out of service. Examples include removing hazardous waste or decommissioning a nuclear power plant. This obligation is a long-term liability and must be recorded in the financial statements.

Asset Retirement Obligations Are ________