1) Oil, natural gas and other energy reserves are considered long-lived assets for accounting purposes. T/F

Companies are required to perform impairment testing on a periodic basis or when events or changes in circumstances occur that indicate the carrying amount may not be recoverable. T/F

Most companies do not have a policy that spells out the types of occurrences that would trigger impairment consideration, such as changes in crude oil prices, the effects of inflation and technology improvements on operating expenses, the outlook for global or regional market supply-and-demand and numerous other matters. T/F

Under ASC Topic 932, companies can use one of two methods to account for their oil and operations: the successful-efforts method or the full-cost method. T/F

Most oil and gas companies utilize the successful-efforts method of accounting. T/F