After a natural resource such as gas or coal is used up by the client,the client is responsible for restoring the land to its original condition.What is the cost of this restoration called?
A)Impairment expense.
B)Depletion expense.
C)Amortization expense.
D)Reclamation expense.

Question

Quizplus · Accepted Answer

The cost of restoring the land to its original condition after using a natural resource is called reclamation expense. Therefore, the best choice is D. Impairment expense refers to the decrease in the value of an asset, depletion refers to the reduction in the quantity or quality of a natural resource over time, and amortization refers to the allocation of the cost of an intangible asset over its useful life.

After a Natural Resource Such as Gas or Coal Is