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The land management department in BRITANIA O&G Company incurred costs of BPD 1.000.000 in acquiring leases. Out of 100.000 acres of prospects, 40,000 acres were

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The land management department in BRITANIA O&G Company incurred costs of BPD 1.000.000 in acquiring leases. Out of 100.000 acres of prospects, 40,000 acres were leased. How much should the company capitalized as unproved property? O BPD 10,000 O BPD 40,000 BPD 100,000 O BPD 400,000 Question 1 Successful efforts method considers that to qualify as assets, costs should: be necessary for ongoing development operations be necessary for ongoing development operations O provide future economic benefits that can be identified and measured O be certain to happen Question MINARY Company is exploring an oil area in the Gulf Sea. It paid a geological rm 2million AED to conduct a detailed survey on the geo-physical characteristics of the area. The journal entry for recording the transaction by ForOil is: dr Payables 2,000,000 cr G&G expenses 2,000,000 O dr G&G expense 2,000,000 cr Receivables 2,000,000 O dr Receivables 2,000,000 cr G&G expenses 2,000,000 O dr G&G expense 2,000,000 cr Cash 2,000,000 The land management department in BRITANIA O&G Company incurred costs of BPD 1.000.000 in acquiring leases. Out of 100.000 acres of prospects, 40,000 acres were leased. How much should the company capitalized as unproved property? O BPD 10,000 O BPD 40,000 BPD 100,000 O BPD 400,000 Question 1 Successful efforts method considers that to qualify as assets, costs should: be necessary for ongoing development operations be necessary for ongoing development operations O provide future economic benefits that can be identified and measured O be certain to happen Question MINARY Company is exploring an oil area in the Gulf Sea. It paid a geological rm 2million AED to conduct a detailed survey on the geo-physical characteristics of the area. The journal entry for recording the transaction by ForOil is: dr Payables 2,000,000 cr G&G expenses 2,000,000 O dr G&G expense 2,000,000 cr Receivables 2,000,000 O dr Receivables 2,000,000 cr G&G expenses 2,000,000 O dr G&G expense 2,000,000 cr Cash 2,000,000

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