#98 Natural Resources Flashcards by Nick Christensen | Brainscape

Q

Regarding Natural Resources, what costs are capitalized?

A

Acquisition costs
Exploration costs
Development costs (The amount paid after the resource has been discovered but before production begins)

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Q

What are the two methods of accounting for exploration costs?

A

Successful efforts method

2. Full costing method

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Q

Regarding Natural Resources, what is depletion?

A

The allocation of the cost of the natural resource to inventory.

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