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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?

  1. The decision as to whether a well is classified as exploratory or development is based on the assignment of proved reserves.
  2. 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.
  3. Proved and proved developed reserves are used in computing unit-of-production depreciation, depletion, and amortization.
  4. All of the above.

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