Which of the following E&E costs would be classified as intangibles?
I - Drilling rights.
II - Equipment inspection costs.
III - Exploration licenses.
IV - Capitalised consumable costs.
A) I, II and III.
B) II, III and IV.
C) I, II and IV.
D) I, III and IV.

Question

Quizplus · Accepted Answer

Intangibles are assets that lack physical substance and are typically identifiable only through legal or contractual rights. In this case, drilling rights, exploration licenses, and capitalized consumable costs are all intangible assets. Equipment inspection costs, on the other hand, are a tangible cost associated with maintaining physical equipment.

Which of the Following E&E Costs Would Be Classified as Intangibles