1Z0-516 Oracle EBS R12.1 General Ledger Essentials Exam Set 8

Which two statements would be true when helping a customer make implementation decisions for General Ledger? (Choose two)
A. Integration issues can be minimized.
B. Training can be standardized when Oracle is implemented without customization.
C. Patching cannot be done on a customized implementation.
D. All Oracle subledger journals go directly to General Ledger to overcome interface problems.
E. Cost of upgrades would not be affected.


Options are :

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

Answer : A,B

Which four statements are true about the Global Inter company System Auto Accounting Rules? (Choose four.)
A. Sender Clearing Rules automatically generate the sender clearing transaction line.
B. Sender Distribution Rules automatically generate the sender transaction distribution line(s).
C. You can use only one set of Autoaccounting rules per pair of sender/receiver chart of accounts.
D. Receiver Clearing Rules automatically generate the receiver clearing transaction line.
E. Receiver Distribution Rules automatically generate the receiver transaction distribution line(s). 


Options are :

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

Answer : A,C,D,E

Revenue accounts can be viewed only by the head of the Finance team, who has a GL Superuser responsibility. She has successfully created a standard Profit and Loss statement for the  company. Another member of the department with a General Ledger Supervisor responsibility has been asked to run the standard Profit and Loss statement for Feb-06. The report shows only the expenses accounts. Which two steps should she perform so that the Profit and Loss statement will run successfully? (Choose two.)

A. Perform an on-line inquiry to get the revenue balances.
B. Recreate the Profit and Loss under her own responsibility.
C. Ask to have the profile option FSG: Enforce Segment Value Security changed to No.
D. Ask to have security removed from her responsibility. 


Options are :

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

Answer : C,D

Your client is in the process of closing its first year-end. The client completed the accounting cycle and found that several income statement accounts have a remaining balance. What would be the likely cause of these remaining balances?


Options are :

  • Natural accounts were defined with incorrect account type. (Correct)
  • Natural accounts were defined to not allow posting.
  • Natural accounts were defined to hold both statistical and monetary values.
  • Natural accounts were defined as parent values.

Answer : Natural accounts were defined with incorrect account type.

You are implementing Oracle General Ledger at a ABC.com site. ABC.com is based in the U.S. but has a presence in many countries worldwide, and has transactions in multiple currencies. The implementation team decides that GL multi currency setup will be part of the implementation. ABC.com's management in the U.S. wants to see all the transactions in U.S. dollars, whereas the management in Europe wants to see the transactions in euros. The CFO has stated this requirement: While entering the daily transactions the user should have the ability to enter the current exchange rate, but at month end the assets and liabilities in euros could be converted into U.S. dollars at the
monthly average exchange rate. Can this requirement be satisfied?


Options are :

  • Account generator needs to be customized to satisfy this requirement.
  • Workflow needs to be customized to satisfy this requirement
  • Oracle GL provides this functionality and there is no problem in satisfying the requirement (Correct)
  • Oracle GL does not support this functionality

Answer : Oracle GL provides this functionality and there is no problem in satisfying the requirement

Which three are part of the Global Consolidation System functionality ? (Choose three.)
A. View the multilevel structure of your consolidation in a graphical format.
B. Create consolidated journal entries in both parent and subsidiary set of books as part of the
consolidation process.
C. Define mapping rules to determine how subsidiary account balances roll up into the parent.
D. View the status and monitor subsidiary account balances for any changes that occur after the
subsidiary data has been transferred.
E. Use the IDT to transfer data from Oracle Global Consolidations to external financial feeder
systems.


Options are :

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

Answer : A,C,D

Select the three true statements about mapping rules. (Choose three.)
A. There are only two mapping rule actions: 1. Copy Value from; 2. Assign Value from
B. Mapping sets enable you transfer data from multiple subsidiaries simultaneously.
C. A rollup rule tells General Ledger what detail level of information to transfer and how to roll that information up to the parent.
D. You can define a combination of segment values and account rules.
E. There are only three rollup rules: 1. Transfer Level Detail - Using Detail Ranges; 2. Transfer
Level Detail - Using Parent; 3. Transfer Level Summary - Using Parent 


Options are :

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

Answer : B,C,D

Your client wants the ability to report with Financial Statements Generator (FSG) and perform account inquiry at the summary (business unit) level of its Cost Center segment. A business unit is a group of cost centers and a business unit manager typically has several cost centers under his or her responsibility. Which option will meet the client's requirements?


Options are :

  • Define parent cost centers and a hierarchy of parent-child cost centers. Define Roll up Groups for the parent cost centers. Create FSG based on the Roll up Groups
  • Define parent cost centers and a hierarchy of parent-child cost centers. Create Summary Accounts based on the parent cost centers. Create FSG based on the parent cost center values
  • Define parent cost centers and a hierarchy of parent-child cost centers. Define Summary Accounts for the parent cost centers. Create FSG based on the parent cost center values or Summary Accounts.
  • Define parent cost centers and a hierarchy of parent-child cost centers. Define Roll up Groups for the parent cost centers, and Summary Accounts. Create FSG based on the parent cost center values or Summary Accounts (Correct)

Answer : Define parent cost centers and a hierarchy of parent-child cost centers. Define Roll up Groups for the parent cost centers, and Summary Accounts. Create FSG based on the parent cost center values or Summary Accounts

ABC.com wants to compare actual amounts against their budgeted amounts. Which reporting or query options would provide that detail? (Choose two.)
A. Account Analysis
B. On-line Account Inquiry
C. On-line Budget Inquiry
D. Trial Balance
E. Financial Statement Generator


Options are :

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

Answer : B,E

You are implementing Oracle General Ledger at a ABC.com site. ABC.com is based in the U.S. but has a presence in many countries worldwide, and has transactions in multiple currencies. The implementation team decides that GL multi currency setup will be part of the implementation. The company's management in the U.S. wants to see all the transactions in U.S. dollars, whereas the management in Europe wants to see the transactions in euros. The CFO has stated this requirement: While entering the daily transactions the user should have the ability to enter the current exchange rate, but at month end the assets and liabilities in euros could be converted into U.S. dollars at the monthly average exchange rate. Can this requirement be satisfied?


Options are :

  • Oracle GL provides this functionality and there is no problem in satisfying the requirement. (Correct)
  • Workflow needs to be customized to satisfy this requirement.
  • Account generator needs to be customized to satisfy this requirement.
  • Oracle GL does not support this functionality

Answer : Oracle GL provides this functionality and there is no problem in satisfying the requirement.

ABC.com, the GL accountant comes to you with a requirement to define a particular Auto allocation request set where approvers are sent notifications automatically for the generated journals. If there are any problems in generating the journals, then he should have the option to rollback the whole process. What is your response?


Options are :

  • The GL:Auto allocation Rollback Allow profile option must be enabled. (Correct)
  • It is not possible to satisfy this requirement
  • Cross-validation rules must be defined to satisfy this requirement
  • Dynamic Insert must be enabled to satisfy this requirement.

Answer : The GL:Auto allocation Rollback Allow profile option must be enabled.

Which four attributes are validated during the Journal Import Verification Process? (Choose four.)
A. Account Combination
B. Period
C. Balanced Journal
D. Cross Validation Rule
E. Set of Books
F. Approval Level 


Options are :

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

Answer : A,B,C,D

In creating a report, what is true about the column set? (Choose two.)
A. Formats can be set for each column.
B. Seeded column sets provided by Oracle must be used.
C. Calculations can be performed using columns.
D. Accounts cannot be assigned to a column set. 


Options are :

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

Answer : A,C

For which two business reasons would you use reporting hierarchies instead of summary accounts? (Choose two.)
A. The primary use for summarization is only for reports.
B. You want to use summarized data in journal formulas.
C. Summary relationships are not permanent.
D. You want online inquiry of summary amounts.
E. You want to easily reorganize summary views in the future. 


Options are :

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

Answer : A,E

ABC.com, the GL accountant comes to you and says that the Accounting Department requires two current budgets, as they work with two senior executives within the company who have different budget figures, and Tess has to prepare and submit budgets to both of them. What is your response?


Options are :

  • The profile option Require Budget Journal should be set at the budget level if you want to have multiple current budgets
  • It is not possible to have more than one current budget. (Correct)
  • It depends on the budget organization, whether you can have multiple current budgets
  • Oracle GL budget functionality supports multiple current budgets, so there is no problem in satisfying this requirement

Answer : It is not possible to have more than one current budget.

ABC.com, the GL accountant, says that she has defined the budget and she wants her assistant accountants to enter and update budgets, but she does not want this budget to be the default budget. What is your response?


Options are :

  • If the client wants to do this, then the budget status should be Open. (Correct)
  • If the client wants to do this, then the budget status should be Current.
  • If the client wants to do this, then customization of Oracle Workflow is the only option.
  • The Oracle GL budget functionality cannot satisfy this requirement.

Answer : If the client wants to do this, then the budget status should be Open.

Select the two minimum set up steps for intercompany accounting. (Choose two.)
A. Define a value set for the Company and Intercompany segments.
B. Set up intercompany accounts for journal source and journal category of Other.
C. Set up inter company accounts for every journal source and journal category for inter company transactions.
D. Define a clearing company for all many-to-many intercompany journals.
E. Include an Intercompany segment in the chart of accounts structure.
F. Define a journal source and a journal category for Intercompany.
G. Enable the Intercompany Qualifier for the Intercompany segment.
H. Enable Balance Intercompany Journal when defining the set of books. 


Options are :

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

Answer : B,H

A General Ledger user at ABC.com opens the account inquiry screen, chooses a line item, and
wants to drill down to Sub-ledger and find out more details about an Accounts Payable invoice.
The user is unable to drill down. What is the likely explanation for this? (Choose two.)
A. Journal source was not set up to import references.

B. Journal entry was not posted.

C. Drilldown was option not added to responsibility.

D. Journal import was not done.

E. Journal category was improperly setup. 


Options are :

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

Answer : A,C

ABC.com's GL accountant is responsible for taking care of recurring journals. She comes to you with a problem: she ran the Generate Recurring Journal program before the AP and Payroll entries had been posted to GL. As a result, the recurring journal entries created are incorrect. She has not yet posted the generated recurring journal, and wants to know whether she can generate it again. The Sequential Numbering profile option is set to Partially used. What response do you offer?


Options are :

  • Generate this recurring journal in the previous period
  • Delete the first generated recurring journal and generate it again (Correct)
  • Generate this recurring journal in the next period.
  • It is not possible under this scenario to regenerate the recurring journal.

Answer : Delete the first generated recurring journal and generate it again

What are two benefits of using the Journals Import: Group By Effective Date profile option? (Choose two.)
A. Facilitate more transparent exchange rate conversions.
B. Make daily updates to daily business intelligence.
C. Facilitate consolidation.
D. Account for business transactions by effective date or by accounting date. 


Options are :

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

Answer : B,D

ABC.com is a U.S.-based company with business operations in North America and Europe. It has existing Oracle GL sets of books in its single global instance. All sets of books use a global chart of accounts and a common accounting calendar. It just expanded its business to Australia and acquired two new companies with the same year end as ABC.com. It wants to be able to include the new companies in existing financial reports created with Financial Statements Generator (FSG). How can it easily integrate the two new companies into its existing GL with minimal effort?


Options are :

  • Define two new company values, enable AUD currency, and define two new sets of books. Translate AUD to USD for FSG reports in USD. Consolidate the new sets of books into its existing consolidation set of books
  • Define two new company values, enable AUD currency, and define a new set of books. Translate AUD to USD and include the two new companies for FSG reports in USD. (Correct)
  • Define two new company values, define a new AUD currency, and define two new sets of books. Translate AUD to USD for FSG reports in USD. Consolidate the new sets of books into its existing consolidation set of books
  • Define the new company values, enable AUD currency and define two new sets of books. Translate AUD to USD for FSG reports in USD. Consolidate the two new sets of books into their existing consolidation set of books

Answer : Define two new company values, enable AUD currency, and define a new set of books. Translate AUD to USD and include the two new companies for FSG reports in USD.

During the testing phase of your implementation, you find that you are unable to delete a journal batch, though it is not yet posted. You ask the technical consultant for help and he e-mails you a  checklist of scenarios in which batches cannot be deleted. Which scenarios would be on this checklist? (Choose three.)

A. The journal batch has not been approved.
B. Funds are in the process of being reserved for the batch.
C. The source is frozen.
D. Funds have been reserved for the batch.
E. The journal batch has not been posted.


Options are :

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

Answer : B,C,D

You are implementing Oracle General Ledger at a client site. The client is based in the U.S. but has a presence in many countries worldwide, and has transactions in multiple currencies. The implementation team decides that GL multi currency setup will be part of the implementation. The GL accountant tells you that the companys outstanding loans in Europe in euros, and at every month end there is a need to revalue and report these loans in US dollars on the current exchange rate. She wants a system that automatically performs this revaluation using the month-end exchange rates. She wants to know whether this requirement can be satisfied. What is your response?


Options are :

  • Workflow needs to be customized to satisfy this requirement.
  • Oracle GL provides this functionality and there is no problem in satisfying the requirement (Correct)
  • Account generator needs to be customized to satisfy this requirement.
  • Oracle GL does not support this functionality.

Answer : Oracle GL provides this functionality and there is no problem in satisfying the requirement

To review available Financial Statement Generator elements, which two reports would be helpful?


Options are :

  • Column Set Detail Listing, Report Detail Listing
  • Content Set Detail listing, Chart of Accounts - Rollup Detail Listing
  • Column Set Summary Listing, Row Set Detail Listing (Correct)
  • Content Set Detail Listing, Report Set Detail Listing

Answer : Column Set Summary Listing, Row Set Detail Listing

Joe is the controller of ABC.com, your client. He is anxious to see you demonstrate the basic functionality of General Ledger with a set of books that somewhat reflects his company's business. Tell him the minimum four pieces of information you need from him, to create a set of books for your demonstration. (Choose four.)
A. number of accounting periods
B. accounting calendar with periods and fiscal year end
C. currencies that his company has transactions in
D. currency conversion rates
E. suspense account
F. retained earnings account
G. intercompany account
H. company organization structure for Chart of Accounts
I. encumbrance account
J. the base (functional) currency of his company


Options are :

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

Answer : B,F,H,J

ABC.com, the GL accountant, comes to you and asks whether she can use the Constant (C)
segment type with parent segment values while defining the mass allocation formula. What is your
response?


Options are :

  • You can only do so if there is a summary account associated with the parent. (Correct)
  • Whether you can do this depends on the formula.
  • Whether you can do this depends on the responsibility.
  • Allow Dynamic Insert must be enabled, and then you can do this

Answer : You can only do so if there is a summary account associated with the parent.

The GL user entered a taxable journal and posted it. Later the user realizes that he entered a wrong tax code. What should he do?


Options are :

  • delete the journal and re-enter it
  • modify the tax code at the line level
  • reverse and re-enter the journal (Correct)
  • enter another journal with the difference in the tax amount

Answer : reverse and re-enter the journal

A ABC.com manager 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 create a rollup group named Cash. Which summary account template would you create to review cash balances by company?
(D: Detail)
(T: Total)


Options are :

  • T-D-T-Cash
  • D-T-T-Cash (Correct)
  • D-D-D-Cash
  • D-T-D-Cash

Answer : D-T-T-Cash

One of your co-workers, ABC.com, is working to define and develop Financial Statement Generator reports where the budget amounts and actual amounts would display on the report per period. Tess comes to you and says that he has defined an FSG report according to the client's requirements; the actual amounts are correctly shown, but the problem is that budget amounts are not showing up on the report. What is your response?


Options are :

  • There is some issue with the assignment of accounts to the budget organization.
  • The budget name needs to be associated with the row set through control values (Correct)
  • The last fiscal year of the budget is Closed.
  • Budget status is Frozen

Answer : The budget name needs to be associated with the row set through control values

Identify two features of Content Sets when creating reports using Financial Statement Generator (FSG)? (Choose two.)

A. They cannot be added at the time an FSG is run.
B. They are required for profit and loss statements.
C. They provide the ability to override row set definition.
D. They provide the ability to add calculations.
E. They enable the generation of multiple similar reports in a single run. 


Options are :

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

Answer : C,E

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