Question

In: Accounting

1)The successful-efforts method requires entities to group their assets by type: proved or unproved properties. T/F...

1)The successful-efforts method requires entities to group their assets by type: proved or unproved properties. T/F

Proved properties are required to be tested for impairment when events or circumstances indicate the carrying amount may not be recoverable, however, many companies choose to test them annually in conjunction with the receipt of an annual reserve report. T/F

Proved properties contain estimated quantities of oil and gas that geoscience and engineering data demonstrate with reasonable certainty to be economically producible in the future under existing economic conditions, operating methods and government regulations, also referred to as proved reserves. T/F

The impairment test for proved properties considers developed and undeveloped reserves, including a risk-adjusted measurement of probable and possible reserves. T/F

Unproved properties must be assessed for impairment on a periodic basis, at least annually, to determine if they have been impaired. T/F

Solutions

Expert Solution

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!
1) The successful-efforts method requires entities to group their assets by type: proved or unproved properties.
The statement is true.
2) Proved properties are required to be tested for impairment when events or circumstances indicate the carrying amount may not be recoverable, however, many companies choose to test them annually in conjunction with the receipt of an annual reserve report.
The statement is true.
3) Proved properties contain estimated quantities of oil and gas that geoscience and engineering data demonstrate with reasonable certainty to be economically producible in the future under existing economic conditions, operating methods and government regulations, also referred to as proved reserves
The statement is true.
4) The impairment test for proved properties considers developed and undeveloped reserves, including a risk-adjusted measurement of probable and possible reserves.
The statement is true.
5) Unproved properties must be assessed for impairment on a periodic basis, at least annually, to determine if they have been impaired.
The statement is true. As per ASC 932-360-35.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

QUESTION 1 Concerning current accounting for oil and gas properties, which statement is true? The successful-efforts...
QUESTION 1 Concerning current accounting for oil and gas properties, which statement is true? The successful-efforts method must be used. The reserve-recognition method must be used. Either the successful-efforts method or the full-cost method may be used. The full-cost method must be used. QUESTION 2 Property acquired through donation is recorded at its book value its fair market value its cost zero QUESTION 3 Which one of the following types of assets should not be classified as property, plant, and...
Change in Accounting Method Instructions Delta Oil Company uses the successful-efforts method to account for oil...
Change in Accounting Method Instructions Delta Oil Company uses the successful-efforts method to account for oil exploration costs. Delta started business in 2014 and prepared the following income statements: DELTA OIL COMPANY Income Statements For the Years Ended December 31, 2014 - 2015 1 2014 2015 2 Revenue $1,000,000.00 $3,000,000.00 3 Other expenses 400,000.00 1,300,000.00 4 Exploration expenses 120,000.00 238,000.00 5 Income before income taxes $480,000.00 $1,462,000.00 6 Income tax expense (30%) 144,000.00 438,600.00 7 Net income $336,000.00 $1,023,400.00 8...
T or F – Accounting uses a double entry system? 2. T or F – Assets...
T or F – Accounting uses a double entry system? 2. T or F – Assets = Liabilities + Owners Equity? 3. T or F – Assets – Liabilities = Owners Equity? 4. T or F – Assets are normally on the debit side of the T account? 5. Advantages of ERP systems include: A) saves money B) helps adjust to changes C) replaces separate software systems D) all of the above ) T or F – Accounts receivable are...
f(t) = 1- t 0<t<1 a function f(t) defined on an interval 0 < t <...
f(t) = 1- t 0<t<1 a function f(t) defined on an interval 0 < t < L is given. Find the Fourier cosine and sine series of f and sketch the graphs of the two extensions of f to which these two series converge
professions. T refers to thinking and F refers to feeling. Personality Type Occupation T F Row...
professions. T refers to thinking and F refers to feeling. Personality Type Occupation T F Row Total Clergy (all denominations) 60 88 148 M.D. 72 87 159 Lawyer 123 89 212 Column Total 255 264 519 Use the chi-square test to determine if the listed occupations and personality preferences are independent at the 0.01 level of significance. (a) What is the level of significance? State the null and alternate hypotheses. H0: Myers-Briggs preference and profession are not independent. H1: Myers-Briggs...
T/F 1-6 1. A regression line obtained by the least squares method is the line that...
T/F 1-6 1. A regression line obtained by the least squares method is the line that maximizes the slope of the regression line. 2. In a simple regression model, the square of the correlation between the response variable and the explanatory variable is equal to the coefficient of determination of the regression model. 3. If the spread of residuals increases as the response variable of a regression model increases, the assumption of homoscedasticity is met. 4. The mean of the...
The t test is an exact test but requires stronger assumptions about the data. (T/F) Please...
The t test is an exact test but requires stronger assumptions about the data. (T/F) Please give a brief explanation.
Delta Oil Company uses the successful-efforts method to account for oil exploration costs. Delta started business...
Delta Oil Company uses the successful-efforts method to account for oil exploration costs. Delta started business in 2014 and prepared the following income statements: DELTA OIL COMPANY Income Statements For the Years Ended December 31, 2014 - 2015 1 2014 2015 2 Revenue $1,000,000.00 $3,000,000.00 3 Other expenses 400,000.00 1,300,000.00 4 Exploration expenses 120,000.00 238,000.00 5 Income before income taxes $480,000.00 $1,462,000.00 6 Income tax expense (30%) 144,000.00 438,600.00 7 Net income $336,000.00 $1,023,400.00 8 Earnings per share $3.36 $10.23...
Instructions Delta Oil Company uses the successful-efforts method to account for oil exploration costs. Delta started...
Instructions Delta Oil Company uses the successful-efforts method to account for oil exploration costs. Delta started business in 2014 and prepared the following income statements: Question not attempted. DELTA OIL COMPANY Income Statements For the Years Ended December 31, 2014 - 2015 1 2014 2015 2 Revenue $1,000,000.00 $3,000,000.00 3 Other expenses 400,000.00 1,300,000.00 4 Exploration expenses 120,000.00 238,000.00 5 Income before income taxes $480,000.00 $1,462,000.00 6 Income tax expense (30%) 144,000.00 438,600.00 7 Net income $336,000.00 $1,023,400.00 8 Earnings...
Let f(t) =t^2−1 and g(t) =e^t. (a) Graph f(g(t)) and g(f(t)). (b) Which is larger,f(g(5)) or...
Let f(t) =t^2−1 and g(t) =e^t. (a) Graph f(g(t)) and g(f(t)). (b) Which is larger,f(g(5)) or g(f(5))? Justify your answer. (c) Which is larger, (f(g(5)))′or g(f(5))′? Justify your answer.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT