The Method Used to Account for Oil and Gas Exploration

question 32

Multiple Choice

The method used to account for oil and gas exploration costs that capitalizes the exploration costs of productive wells is the: 

• A) reserve recognition accounting.
• B) successful efforts approach.
• C) soft asset approach.
• D) full-cost approach.

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Definitions:

Tradition

The transmission of customs, beliefs, or symbols from one generation to another, often maintaining continuity in a culture or society.

Custom

Established practices or behaviors that are accepted and expected within a specific culture or community.

Historical School

A school of jurisprudence that uses traditions as the model for future laws and behavior. Also called tradition or custom.

Statute

A written law passed by a legislative body at the federal or state level, setting forth regulations, provisions, and penalties.