NATURAL RESOURCES Flashcards
1
Q
CAPITALIZED COSTS FOR NATURAL RESOURCES
A
- Acquisition
- Exploration
- Development
2
Q
What costs are included in full costing method of exploration
A
ALL costs for exploring are CAPITALIZED to the natural resource account.
3
Q
Depletion
A
allocating natural resource costs to inventory
4
Q
List of methods for accounting for exploration costs
A
- Successful efforts
2. Full cost
5
Q
Depletion rate formula for Natural Resources
A
(Natural resource-residual value)/total estimated units
6
Q
What costs goes into SUCCESSFUL efforts
A
The costs of successful exploration are capitalize to the natural resources account.
7
Q
Classification of natural resources on BALANCE SHEET
A
NON CURRENT ASSET
