Specialized Accounting MCQs:

1 1. Support equipment and facilities that service a particular field or other area constituting a cost centre should be capitalised and depreciated using the method over the proved developed reserves of the cost centre. a. Declining balance b. Unit of production c. Straight-line d. Any reasonable 12. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. In the oil and gas industry, the systematic allocation of the depreciable amount of a wasting asset is thus referred to as: a. Depreciation b. Amortisation c. Depletion d. Unit of production basis 13. High costs and high risks have led to many kinds of co-operative arrangements for exploration and production hydrocarbons. is type of co-operative arrangement where reimbursement and remuneration is in kind. a. Royalty/Tax systems b. Pure service contracts c. Production sharing contracts d. Risk service contracts 14. Proved reserves is defined as a. Reserves that are expected to be produced from existing wells b. Reserves that are expected to be produced from new wells c. Reserves that have at least 50% chance of being technically and economically producible d. Reserves that have a 90% chance of being technically and economically producible 15. is not one of the four types of accounting that must be done by oil and gas exploration and production companies. a. Costs of goods sold b. Exploration costs c. Development costs d. Production costs 16. A value chain identifies the independent, economically viable segments of an industry, where value is what customers are willing to pay for. Which of the following segments is not a value chain in the oil and gas industry? a. Upstream b. Oilfield services c. Midstream d. Downstream