Which Statement Does Not Describe the "Successful Efforts" Method

question 66

Multiple Choice

Which statement does not describe the "successful efforts" method?

• A)A method of accounting that capitalizes costs of mineral exploration and evaluation only if the outcome is successful.
• B)A method of accounting that capitalizes costs of mineral exploration and evaluation only if the production is technically feasible.
• C)A method of accounting that capitalizes costs of mineral exploration and evaluation until the production is successful.
• D)A method of accounting that capitalizes costs of mineral exploration and evaluation only if the production is commercially viable.

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Definitions:

NPV

Net Present Value, a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Net Advantage to Leasing (NAL)

A calculation used to determine the financial benefits of leasing an asset as opposed to purchasing it.

NPV

Net Present Value, a financial metric that evaluates the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.