The Costs-Written-Off Method Is To

question 64

Multiple Choice

The costs-written-off method is to:

• A) write off all exploration and evaluation costs and not reinstate them if economically recoverable reserves are subsequently discovered.
• B) write off all evaluation and development costs unless it is considered likely that economically recoverable reserves will be identified within the next financial period.
• C) write off all exploration and evaluation costs but reinstate them if economically recoverable reserves are subsequently discovered.
• D) write off all deferred exploration and development costs as soon as it is determined that the reserves in the area of interest are not economically recoverable.

---

Definitions:

Larynx

The voice box located in the upper part of the airway responsible for voice production, breathing, and swallowing.

Alveolar Sac

A tiny sac located at the very end of the respiratory tree in the lungs where gas exchange occurs.

Bronchiole

Small airways in the lungs that branch from the bronchi and lead to the alveolar sacs, facilitating the exchange of oxygen and carbon dioxide.

Respiratory System

The bodily system consisting of organs and structures used for breathing, including the lungs, bronchi, trachea, and diaphragm.