What Is the Account That Is Debited When the Liability

question 76

Multiple Choice

What is the account that is debited when the liability is initially capitalized for an asset retirement obligation to dismantle an ocean oil rig?

• A)a retirement expense account
• B)an accretion expense account
• C)the oil rig asset account
• D)a separate quasi-asset account

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Definitions:

Cost Center Analysis

The process of evaluating the costs associated with a specific business unit or department, without directly attributing to revenue generation, aiming to optimize efficiency.

Logistics

The detailed coordination and implementation of complex operations involved in the movement, storage, and flow of goods from origin to destination.

Supply Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

Trade-Off in Logistics

The balancing act between different logistical aspects, like cost versus speed, to achieve optimal outcomes.