1- Which one of the following statements is incorrect regarding conceptual framework?

Select one:

a. it includes guidance, concepts and measures used in preparation of financial statements

b. it discusses the measurements basis and the underlying assumptions of financial statements and its elements

c. none of answers

d. all answers

e. it identifies different measures of financial statements elements

2-Cost of the oil inventory would include:

Select one:

a. Production cost, depletion expense, and selling and administrative cost

b. None of the answers

c. Production cost, depletion cost of the year and exploration cost

d. Pre-exploration and Production cost only

e. Production cost and depletion cost of the year

3- The central issue of corporate governance is

Select one:

a. to alleviate the conflicts of interest between management and shareholders.

b. to alleviate the conflicts of interest between shareholders and bondholders.

c. to protect creditors from management

d. to protect shareholders from management and board of directors.

4- Assuming that the discovery of oil and gas is unsuccessful, the costs of drilling under the successful effort method will be

Select one:

a. Expensed in the income statement

b. Part is capitalized in the balance sheet and part is expensed in the profit and loss account

c. Capitalized in the statement of financial position

d. Neither capitalized nor expensed

Please answer all questions.