1Z0-516 Oracle EBS R12.1 General Ledger Essentials Exam Set 2

In the context of adding, deleting, and disabling secondary ledgers, select two valid statements. (Choose two.) 

A. The sub ledger accounting method must be assigned if defining a balance- or journal-level sub ledger.
B. The sub ledger accounting method must be assigned only to the secondary ledger in case of defining a sub Ledger journals-level secondary ledger.
C. The sub ledger accounting method must not be assigned if defining an adjustments-only secondary ledger for manual adjustments in General Ledger.
D. The sub ledger accounting method need not be assigned to the primary ledger for assigning a sub ledger accounting method to the adjustments-only secondary ledger.
E. The sub ledger accounting method must be assigned to both primary and secondary ledgers to use the adjustments-only secondary ledger for both manual and automated adjustments from sub ledger accounting. 


Options are :

  • B,C
  • B,D
  • A,B
  • C,E (Correct)

Answer : C,E

ABC Corporation is headquartered in New Delhi with an office in Mumbai. They share the same chart of accounts, calendar, and currency. The Mumbai ledger contains manual adjustments and automated adjustments. The New Delhi office does not need a complete ledger to perform
management or statutory reporting. Which four statements are true in the given scenario? (Choose four.)

A. The Mumbai ledger is an adjustment-only secondary ledger.
B. Perform all adjustments in the Mumbai ledger.
C. Perform all day-to-day transactions in the New Delhi ledger.
D. Use ledger sets to combine transaction data and adjustment data.
E. Perform all day-to day-transactions and adjustments in the New Delhi ledger.
F. Consolidate data in the Mumbai ledger with the New Delhi ledger while reporting. 


Options are :

  • A,B,C,D (Correct)
  • A,C,B,D
  • C,D,E,F
  • B,C,D,E

Answer : A,B,C,D

To achieve the maximum summary account functionality for total (T), how must the value sets for each segment of the accounting key flex field be set? 


Options are :

  • Precision must be set to one.
  • The format type must be set to character, and the additional option of numbers only must not be selected. (Correct)
  • The maximum size of each segment of the accounting key flex field must be five characters.
  • The list type must be set to long list of values.

Answer : The format type must be set to character, and the additional option of numbers only must not be selected.

The management segment qualifier must be attached to which key flexVfield segment? 


Options are :

  • department segment (Correct)
  • account segment
  • company segment
  • future segment

Answer : department segment

Select two valid statements that apply to chart of accounts structures for a global company.
(Choose two.) 

A. A segment of different chart of accounts structures can share the same value set.
B. A global chart of accounts is possible only if all sets of books for companies worldwide use the same chart of accounts structure.
C. If the same value set is used for two or more chart of accounts structures, the same security rules for that segment cannot be assigned to multiple structures.
D. It is possible to have multiple companies in the same set of books provided that they share the same chart of accounts structure, accounting calendar, and reporting currency. 


Options are :

  • A,B (Correct)
  • C,D
  • B,D
  • A,C

Answer : A,B

Select two statements that are true about ledgers in Oracle General Ledger. (Choose two.)
A. Each accounting setup requires a primary ledger.
B. Each accounting setup requires a primary ledger and a reporting ledger.
C. Each accounting setup requires a primary ledger and an adjustment-only secondary ledger.
D. Each accounting setup optionally requires one or more secondary ledgers and reporting currencies. 


Options are :

  • A,B
  • B,D
  • C,D
  • A,D (Correct)

Answer : A,D

XYZ Company is implementing Oracle General Ledger. They want to record and report on expenses by cost center. Identify three segments that must be defined for XYZ Company's accounting flexfield.(Choose three.)
A. project
B. account
C. balancing
D. cost center
E. intercompany


Options are :

  • A,B,C
  • C,D,E
  • A,B,D
  • B,C,D (Correct)

Answer : B,C,D

You are implementing Oracle General Ledger at ABC Enterprises. ABC Enterprises is a legal entity and must perform corporate and statutory reporting. It operates in a country that requires companies to have two complete ledgers: one for statutory reporting and another for corporate reporting. Identify the best option for primary and secondary ledgers. 


Options are :

  • Use the primary ledger to satisfy statutory reporting requirements, and then use a secondary ledger to satisfy corporate reporting requirements.
  • Use the primary ledger to satisfy corporate reporting requirements, and then use a secondary ledger to satisfy statutory reporting requirements. (Correct)
  • Use the primary ledger to satisfy corporate reporting requirements, and then use an adjustment-only secondary ledger to satisfy statutory reporting requirements.
  • Use the primary ledger to satisfy statutory reporting requirements, and then use an adjustmentonly secondary ledger to satisfy corporate reporting requirements.

Answer : Use the primary ledger to satisfy corporate reporting requirements, and then use a secondary ledger to satisfy statutory reporting requirements.

A reversing journal entry can be posted into _____. 


Options are :

  • a past closed period and a current open period
  • a current or any future open period (Correct)
  • a current open period and a never-opened period

Answer : a current or any future open period

ABC Corp. runs the Create Journals program, after which the Create Journal Entries Execution report is automatically created. Identify three components on which the Create Journal Entries Execution report reports. (Choose three.)

A. Budget Journals
B. Posted Journals report
C. Payables encumbrance entries
D. Purchasing encumbrance entries 


Options are :

  • A,B,C
  • A.C.D (Correct)
  • B,C,D
  • A,B,D

Answer : A.C.D

Jack is hired as an Oracle General Ledger implementation consultant for XYZ Corporation. Select two options that are necessary to enable journal approval. (Choose two.)
A. key flexfields
B. Journal Sources form
C. Journal Categories form
D. Journal Encumbrance Types form
E. Journal approval on the Ledger Setup page 


Options are :

  • C,D
  • A,B
  • B,E (Correct)
  • B,D

Answer : B,E

The client's GL accountant comes to you with a problem. A journal cannot be posted because it has not been approved. The preparer cannot submit the journal for approval because the Approve button is disabled in the Enter Journals form and the supervisor has not received a notification requesting the approval. What could be the possible cause for this problem? 


Options are :

  • One of the GL account code combinations in the journal is invalid.
  • Budgetary control has been enabled for the set of books and funds have not been reserved for the journal. (Correct)
  • The profile option GL: Allow Preparer Approval must be reset.
  • Authorization limits have not been defined properly and the GL period is closed.

Answer : Budgetary control has been enabled for the set of books and funds have not been reserved for the journal.

The Health Department of the United Kingdom is using the cash basis of accounting. After the recent elections, the new government has decided to implement Oracle General Ledger. They want to change the accounting method to accrual basis. However, they also want to maintain the cash basis of accounting for reporting purposes. As an implementation consultant, what one recommendation would you make to meet the above requirement? 


Options are :

  • Create a primary ledger with standard cash, and a reporting ledger with standard accrual.
  • Create two primary ledgers with the standard accrual method.
  • Create a primary ledger with standard accrual, and the secondary ledger with the standard cash methods. (Correct)
  • Create two primary ledgers with the standard cash method.

Answer : Create a primary ledger with standard accrual, and the secondary ledger with the standard cash methods.

Jack, the CFO of ABC Company, wants to prepare the annual capital expenditure budget for the current year where the company plans to grow in the last quarter of the year. The capital expenditure budget is subdivided in multiple items, and the corporate calendar used at ABC
Company has thirteen periods. Identify the three budget rules that Jack must use to minimize the effort. (Choose three.)
A. Use the divide evenly rule with the 4/4/4 spread.
B. Use the divide evenly rule with the 4/5/4 spread.
C. Use the divide evenly rule with the 5/4/4 spread.
D. Use the divide evenly rule with the 4/4/5 spread. 


Options are :

  • A,B,D
  • A,C,D
  • A,B,C
  • B,C,D (Correct)

Answer : B,C,D

Purchasing has numerous activities that are performed as a key part of the Procure-to-Pay process. Select three activities that are performed in the Purchasing module that will integrate into Payables. (Choose three.)
A. canceling invoices

B. performing receiving

C. scheduling payments

D. creating purchase orders

 E. creating purchase order detailed accounting information 


Options are :

  • A,C,D
  • A,B,C
  • B,D,E (Correct)
  • B,C,D

Answer : B,D,E

When structuring the summary accounts hierarchy, what fact must you take into consideration? 


Options are :

  • You must include every parent value that is defined in the chart of accounts to a rollup group.
  • General Ledger will not automatically maintain rollup relationships from the summary level to the lowest detail level.
  • Grand parenting is not allowed (parents cannot become children).
  • You can drill down only on balances from the summary level to the lowest detail level, and not to intermediate detail levels. (Correct)

Answer : You can drill down only on balances from the summary level to the lowest detail level, and not to intermediate detail levels.

You are implementing Oracle E-Business Suite Release 12 General Ledger for ABC Corporation. Identify two setups required for journal approval. (Choose two.)
A. Enable journal approval for the Journal Category window.
B. Disable the Journal: Find Approver Method profile option.
C. Enable the Journal: Allow Preparer Approval profile option.
D. Configure the GL journal approval process in Oracle Workflow Builder. 


Options are :

  • A,D
  • C,D (Correct)
  • B,C
  • A,B

Answer : C,D

Peter, the GL accountant, tells you that he has defined the budget and that the budget amounts have been entered and approved by management. After approval, he wants his assistant accountants to NOT be able to update this budget. What would be your response? 


Options are :

  • The Oracle General Ledger budget functionality cannot satisfy this requirement.
  • The budget status must be current.
  • Set the budget status to frozen to meet this need. (Correct)
  • If the client wants to do this, customization of Oracle Workflow is the only option.

Answer : Set the budget status to frozen to meet this need.

Identify three ways in which subledgers transfer information to General Ledger. (Choose three.)
A. balances
B. batch transfer
C. detail journals
D. line-level records
E. summary journals 


Options are :

  • A,B,E
  • C,D,E
  • A,B,C
  • B,C,E (Correct)

Answer : B,C,E

Jane, the GL accountant, asks you whether she could delete the budget after it has been defined.
She also wants to know whether she could delete the budget organization after it has been
defined. What would be your response? 


Options are :

  • You can delete the budget and the budget organization after they have been defined.
  • You cannot delete a budget after it has been defined. However, you can delete a budget organization. (Correct)
  • You cannot delete a budget organization after it has been defined. However, you can delete a budget.
  • You cannot delete the budget or the budget organization after either has been defined.

Answer : You cannot delete a budget after it has been defined. However, you can delete a budget organization.

Which reports would be appropriate as part of a financial month-end close? (Choose all that apply.)
A. Account Analysis
B. Trial Balance - Detail
C. Currency - Daily Conversion Rates Listing
D. Chart of Accounts - Segment Values Listing
E. Other - Calendar Validation Report 


Options are :

  • C,D
  • A,E
  • A,B (Correct)
  • A,D

Answer : A,B

A manager at ABC.com wants to review the cash balance by company. He has asked you to create the summary account template. ABC.coms accounting flexfield has four segments: Company (5 values) Cost Centers (30 values)
Region (4 values)  
Account (180 values) The total number of cash accounts is 5, which are associated with 2 parents: 3 accounts are associated with the parent called Checking. 2 accounts are identified with the parent called Savings. To combine the Cash parents, you created a rollup group named Cash. How many accounts would the summary account template generate?


Options are :

  • 10 (Correct)
  • 1200
  • 40
  • 2

Answer : 10

Which four are valid consolidation tools? (Choose four.)
A. Financial Statement Generator
B. Applications Desktop Integrator
C. Global Consolidation System
D. Global Intercompany System
E. Interface Data Transformer


Options are :

  • A,C,D,E
  • A,D,C,E
  • A,B,C,E (Correct)
  • B,C,D,E

Answer : A,B,C,E

ABC.com has offices around the world, spread across different legal entities. ABC.com is implementing Oracle General Ledger. Its accounting department wants to know how to reduce the burden of elimination entries. What do you recommend?


Options are :

  • Summary Journals
  • Recurring Journals (Correct)
  • ADI Journals
  • Mass Allocation

Answer : Recurring Journals

Oracle General Ledger provides a variety of ways to get information from reports and queries. What can you do using standard reports that you cannot do using on-line queries? (Choose all that apply.)
A. group reports into report sets
B. review T-Accounts
C. view non-financial information


Options are :

  • A,B
  • A,C (Correct)
  • B,C

Answer : A,C

Which sub ledger transfers journal information directly to General Ledger to create an un posted journal entry?



Options are :

  • Purchasing
  • Assets (Correct)
  • Inventory
  • Payables

Answer : Assets

ABC.com has two diverse business operations in retail stores and services. It has five legal entities in Canada and five in the United States for both operations. The fiscal year end is the same for all the legal entities with 12 monthly periods. However, ABC.com wants to use a 4-5-4 accounting calendar for its retail operations and a calendar-month accounting calendar for the services operations. ABC.com also wants to use a single chart of accounts structure. Which five items must ABC.com define to meet the minimum setup steps that are required for the sets of books for all legal entities? (Choose five.)
A. two accounting calendars
B. four sets of books
C. three sets of books
D. two sets of books
E. chart of accounts structure
F. period types or use seeded ones
G. one accounting calendar
H. enable seeded CAD and USD currencies
I. account combinations


Options are :

  • C,D,E,F,G
  • A,C,E,G,I
  • A,B,E,F,H (Correct)
  • B,D,F,H,I

Answer : A,B,E,F,H

When you enter a journal, the journals in that batch _____. 


Options are :

  • should share the same period (Correct)
  • should share the same accounting date
  • should share both the same period and currency
  • can have different periods, currencies, and accounting dates

Answer : should share the same period

ABC.com wants to have 16 accounting periods that include an adjusting period for each quarter in its 4-5-4 accounting calendar. Its fiscal year end is March 31. The normal month end is on a Friday, but the last day of each quarter is always on the last day of the quarter's final calendar month. Choose the remaining setup for the calendar to meet the requirement. 


Options are :

  • Define 12 monthly periods based on the 4-5-4 calendar ending on the last Friday of each month, except for the last month of each quarter that falls on the last day of the month. Define four adjusting periods on March 31 of the fiscal year
  • Define 12 monthly periods based on the 4-5-4 calendar ending on the last Friday of each month, except for the last month of each quarter ending on the last day of the month. Define an adjusting period for each of the last day of the quarter (Correct)
  • Define 12 monthly periods based on the 4-5-4 calendar ending on the last day of each month. Define an adjusting period on the last day of each quarter.
  • Define 12 monthly periods based on the 4-5-4 calendar ending on the last Friday of each month. Define an adjusting period on the last Friday of each quarter

Answer : Define 12 monthly periods based on the 4-5-4 calendar ending on the last Friday of each month, except for the last month of each quarter ending on the last day of the month. Define an adjusting period for each of the last day of the quarter

ABC.com has a requirement that all budget entries are made through journals. Where would you set this up?


Options are :

  • Journal Types
  • Journal Sources
  • Journal Categories
  • Set of Books (Correct)

Answer : Set of Books

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