Which of the Following Is Not One of the Three

question 77

Multiple Choice

Which of the following is not one of the three conditions necessary to be classified as a discretionary activity?

• A) the activity produces a change of state
• B) the change of state was not achievable by preceding activities
• C) the activity enables other activities to be performed
• D) the activity increases efficiency

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Definitions:

Land

The surface of the earth, considered as property and a basis for real estate transactions.

Successful-efforts Method

An accounting approach used in the oil and gas industry to capitalize only those costs associated with successfully locating new oil and natural gas reserves.

Full-cost Method

An accounting practice where all direct and indirect costs of producing an asset are capitalized and then amortized over time.

IFRS

IFRS stands for International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally recognized for preparing financial statements.