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In which of the following ways can the reserve information affect financial accounting? The decision as to whether a well is classified as exploratory or
In which of the following ways can the reserve information affect financial accounting?
- The decision as to whether a well is classified as exploratory or development is based on the assignment of proved reserves.
- The treatment of certain costs as capital versus expense is determined based on whether additional quantities of proved reserves are expected to result from the expenditure.
- Proved and proved developed reserves are used in computing unit-of-production depreciation, depletion, and amortization.
- All of the above.
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