Module 1.12 O&G Accounting Flashcards
Objective 1 Key Terminology: The student will describe key accounting terminology such as assets, liabilities, receivables, payables, depreciation, depletion, owner’s equity, dividends, retained earnings, revenue, expenses, accruals and overheads.
Pg 5
Objective 2 Corporate and Operational: The student will describe the corporate and operational accounting activities.
Pg 10
Objective 3 Revenue Accounting: The student will describe the activities carried out in revenue accounting and the basic knowledge required to conduct the function.
Pg 11
Objective 4 Oil Revenue Accounting: The student will describe the activities carried out in oil revenue accounting and the basic knowledge required to conduct the function.
Pg 12
Objective 5 Gas Revenue Accounting: The student will describe the activities carried out in gas revenue accounting and the basic knowledge required to conduct the function.
Pg 15
Objective 6 NGL Revenue Accounting: The student will describe the activities carried out in NGL revenue accounting and the basic knowledge required to conduct the function.
Pg 17
Objective 7 Condensate Revenue Accounting: The student will describe the activities carried out in condensate revenue accounting and the basic knowledge required to conduct the function.
Pg 18
Objective 8 Sulphur Revenue Accounting: The student will describe the activities carried out in sulphur revenue accounting and the basic knowledge required to conduct the function.
Pg 19
Objective 9 Joint Venture Agreements: The student will be introduced to Joint Ventures.
Pg 20
Objective 10 Joint Venture Accounting: The student will detail the basic functions carried out by the joint venture accountant and the terminology used in the function.
Pg 22
Objective 11 Operating Expenses: The student will identify the types of costs that are categorized as operating expenses.
Pg 23
Objective 12 Capital Costs: The student will detail types of costs that are categorized as capital costs.
Pg 24
Objective 13 Equalization: The student will explain the concept of equalizations and how it is used to allocate operating and capital costs.
Pg 25
Objective 14 Well Payouts: The student will explain the concept of well payout and how this concept is applied.
Pg 26
Objective 15 Process Fees: The student will explain process fees and how they are applied.
Pg 30
Question 1: Sales are A - an asset account B - a liability account C - a revenue account D - an expense account
C)
Question 2: A chart of accounts is
A - a listing of the dollar value in each account
B - a listing of accounts used by a company
C - a statement of the financial status of the company
D - all of the above
B)
Question 3: Operational accounting is primarily responsible for
A - the day-to-day activities of the company
B - annual shareholder reporting
C - required reporting to Revenue Canada
D - all of the above
A)
Question 4: In calculating the base value of production on oil freehold and overriding royalties, the deductions normally allowed are A - capital cost allowance B - processing fees C - operating expenses D - trucking costs
D)
Question 5: The standard volumetric measurement for natural gas in Canada is A - barrels B - cubic meters C - thousands of cubic meters D - gigajoules
C)
Question 6: In calculating the volume base for gas freehold or overriding royalties
A - the contract typical typically requires that production volumes be used
B - the contract typically requires that processed volumes be used
C - the contract typically doesn’t address this issue
D - the contract typically requires that sales of gathered volumes be used
D)
Question 7: Capital cost will generally be shared
A - on a throughput or well count basis
B - as determined by the operator
C - as determined by the joint venture accountant
D - based on the working interest shares
D)
Question 8: Well pay-out statement are required A - if a company elect to participate B - if a company elect to go penalty C - for all wells D - for all joint interest wells
B)
What are the major categories for the standardized chart of accounts? A chart of accounts is a list of what major category?
Assets, liabilities, shareholders equity, income and expenses
Assets accounts are generally listed: A - alphabetical order B - in reducing order of liquidity C - chronologically D - by the book value
A)
Liabilities accounts are generally listed
A - short debt first and long term debt last
B - in order of when the liability is/was acquired
C - the most liquid to the least liquid debt
D - the one with the highest interest rate
A)
What is the double entry bookkeeping system?
Double entry bookkeeping means that for every debit there is a corresponding set of credits equal in value.
The financial statements of a company at the end of an accounting period is derived from A - balance sheet B - income statement C - general ledger D - chart of accounts
C)
What group of reports express the financial condition of the business A - financial statements B - balance sheet C - income statement D - general ledger
A)
What report summarize the operating activity of a business over a period of time? A - revenue report B - expenses report C - income statement D - cost of operation
C)
Which report shows the financial condition of the business over a period of time? A - annual statement B - balance sheet C - income statement D - none of the above
D)Remember the balance sheet is for a specific date in time not over a period of time
What is the standard balance sheet equation?
A - asset - liabilities = retained earnings
B - assets - shareholder’s equity = liabilities
C - retained earnings + liabilities = assets
D - assets = liabilities + shareholder’s equity
D)
Activity period is also known as A - exercise time B - production period C - revenue period D - time of operation
B)
One metric ton of sulfur is equal to A - a lot of bricks B - a thousand kilos of feathers C - a thousand metric cube of gas D - a thousand metric cube of oil
B)
What is the principal use of a by-product of sour gas production? A - sulfur B - gas by-product C - fertilizer D - chemicals enhancement
C)
What is another word for sharing in accounting? A - equilibrium B - equalization C - pay back D - unitization
B)
