1. SECTION 8: OIL AND GAS OPERATIONS Statement 143 will have a major impact on accounting for asset retirement obligations related to oil and gas properties. T/F

2. Statement 143 amends Statement 19. T/F

3. The legal obligation for dismantlement, restoration, and abandonment costs generally will be incurred when a well is drilled or when a platform or other equipment is put in place. T/F

4. Enterprises with oil and gas operations outside the U.S. need not consider the specific asset retirement obligations in those foreign jurisdictions. T/F

5. In applying impairment tests, Statement 19 indicates that estimated future cash flows related to the liability for asset retirement obligations should be excluded from undiscounted cash flows used to test the asset for recoverability and the discounted cash flows used to estimate the asset s fair value. T/F

6. Capitalized asset retirement costs are excluded in the carrying amount of the related asset when tested for impairment. That guidance would apply to enterprises using the successful efforts method of accounting. T/F

7. Under the SEC s full cost accounting rules, no gain or loss is recognized on sales of oil and gas properties unless the related adjustments to capitalized costs as a result of the sale would significantly alter the relationship between capitalized costs and proved reserves for the cost center. T/F