In accounting for oil and gas exploration costs, companies:

Question

Quizplus · Accepted Answer

Companies involved in oil and gas exploration have the option to account for exploration costs using either the full-cost or successful efforts method. The slippery slope method is not a recognized accounting approach for this type of activity. Therefore, option B is the best choice as it correctly identifies one of the acceptable accounting methods for oil and gas exploration costs.

In Accounting for Oil and Gas Exploration Costs, Companies