Specialized Accounting MCQs:

6. Which of the following costs would always be charged to expense under the full cost method? a. Exploratory dry holes b. Salary and benefits of a company geologist c. Salary and benefits of the company Chief Executive Officer (CEO) d. Production costs 7. The costs associated with Development wells dry will be under successful efforts method and under full cost method. a. Capitalised Capitalised b. Capitalised; Expensed c. Expensed; Capitalised d. Expensed; Expensed 8. Successful exploratory wells costs will be under successful efforts method and under full cost method. a. Capitalised Capitalised b. Capitalised; Expensed c. Expensed; Capitalised d. Expensed; Expensed 9. The type of asset that would not be depreciated on the basis of their estimated useful life is a. Payment of signature bonuses on acquisition of a new exploration license b. Office buildings c. Pipeline d. Wasting natural resources10. A reserve base that cannot be used for the unit of production coloulation is a. Only proved developed reserves h. Only probable reserves 0. All proved reserves (both developed and undeveloped) d. All proved reserves and all or part of probable reserves