1Z0-517 Oracle EBS R12.1 Payables Essentials Practice Exam Set 9

The fiscal year of XYZ Inc. is the calendar year. Before closing the Mar-05 period, a GL user notices that an entry related to the Dec-04 period has not been entered. Dec-04 has a closed status. Now that the user has all the approvals, he or she wants to know how to enter and post the
journal in GL, ensuring that all balances are reflected correctly. What must the user do? 


Options are :

  • Open Dec-04; enter and post the journal; run the Trial Balance report; close the period (Correct)
  • Open Dec-04; enter and post the journal; close the period.
  • Open Dec-04, Jan-05, and Feb-05; enter and post the journal; close all periods.
  • The user cannot post to a prior period that is not in the current fiscal year. So, enter and post it in Mar-05.

Answer : Open Dec-04; enter and post the journal; run the Trial Balance report; close the period

You have been asked to demonstrate the basic functionality of Oracle General Ledger with a ledger that reflects XYZ Company's business. Select four data elements that you would need to obtain from XYZ Company to create a ledger for your demo. (Choose four.)
A. the suspense account
B. the intercompany account
C. the retained earnings account
D. the number of accounting periods
E. the base (functional) currency of the company
F. the accounting calendar with periods and the fiscal year-end
G. the company organization structure for the chart of accounts 


Options are :

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

Answer : C,E,F,G

For each sub ledger, there must be one _____. 


Options are :

  • journal type
  • journal category
  • account type
  • journal source (Correct)

Answer : journal source

XYZ Limited has hired Jack as the Oracle General Ledger implementation consultant. Select three steps that are required for creating a new accounting structure. (Choose three.)
A. Define jurisdictions.
B. Define period types.
C. Assign legal entities.
D. Save the accounting structure.
E. Define accounting representations.
F. Define sub ledger accounting methods. 


Options are :

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

Answer : C,D,E

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 :

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

Answer : C,E

Which two actions would you perform by using the column set builder function? (Choose two.)
A. assigning accounts
B. creating the format mask
C. defining calculations in the new column
D. sorting rows based on values in a column 


Options are :

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

Answer : B,C

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

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

ABC Inc.'s calendar is the fiscal year. They also use Average Balance Processing. ABC's accrual category is defined with Auto Reversal, with the reversal period as the next day, and an effective date rule of roll. An accrual journal entered on 29-Apr-05 will be reversed on the
_____. 


Options are :

  • next business day in the same period or the next period, based on the transaction calendar (Correct)
  • first day of the next period
  • next business day in the same period
  • next day in the same period

Answer : next business day in the same period or the next period, based on the transaction calendar

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 flex field.(Choose three.)
A. project
B. account
C. balancing
D. cost center
E. inter company 


Options are :

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

Answer : B,C,D

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 :

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

Answer : B,C,E

To set up Offset Tax under the Tax Configuration tab, which Tax Configuration tab must you select to locate and enable "Set as Offset Tax"? 


Options are :

  • tax rates
  • tax rules
  • tax statuses
  • taxes (Correct)

Answer : taxes

Which three reports can be used for identifying duplicate suppliers? (Choose three.)
A. Supplier Report
B. Supplier Audit Report
C. Supplier Merge Report
D. Supplier Listing By Supplier Name 


Options are :

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

Answer : A,B,D

The purpose of the Unrealized Gain / Loss Report is to review unrealized gains and losses on _____________. 


Options are :

  • Foreign currency invoices (Correct)
  • All invoices
  • All invoices due to inflation effects
  • All invoices due to inflation effects

Answer : Foreign currency invoices

Select the Apply Withholding Tax Payables option that must be set to submit the Withholding Tax by Invoice Report. 


Options are :

  • Allow Force Approval
  • At Payment Time
  • Allow Online Validation
  • At Invoice Validation Time (Correct)

Answer : At Invoice Validation Time

When setting up financials and Payables options, which two options can only be defined if you have Multi-Org enabled? (Choose two.)
A. Accounting
B. Tax Options
C. Invoice Controls
D. Payment Options


Options are :

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

Answer : A,B

With which three modules does Oracle Payables have two-way integration? (Choose three.)
A. Projects
B. General Ledger
C. Cash Management
D. Oracle Purchasing
E. Human Resources 



Options are :

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

Answer : A,C,D

Identify three statements that are true about the withholding tax process. (Choose three.)
A. Tax is automatically calculated at any calculation level.
B. The withholding tax process is a part of Cash Management.
C. Payables automatically generates withholding tax invoices to pay tax authorities.
D. Payables calculates withholding taxes on invoices during the invoice validation process or during the payment calculation.
E. If the withholding tax is calculated during the invoice validation process, the taxable amount withheld is the gross amount.


Options are :

  • C,D,E (Correct)
  • A,B,C
  • None
  • A,C,E
  • A,B,D

Answer : C,D,E

Identify three statements that are true about processing automatic withholding tax invoices and payments. (Choose three.)
A. Withholding distributions for a paid invoice can be reversed.
B. If an invoice is paid or partially paid, withholding distribution cannot be reversed.
C. Payables uses the supplier number as an invoice number for the tax authority's invoice.
D. Withholding tax distributions are automatically created during invoice validation or payment processing.
E. Payables automatically creates a withholding type distribution when a withholding tax group is entered in the Invoices window. 


Options are :

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

Answer : B,D,E

ABC.com wants to provide transparency in its Accounts Payable (AP) operations to its counterparts within the purchasing, Fixed Assets and General Ledger departments. Several complaints have surfaced regarding issues with IP process times and help up payments. The AP
department must strictly adhere to accounting regulations about segregating job functions while trying to meet this requirement. Which task should be performed to make this possible?


Options are :

  • Create custom inquiry forms for them to view invoices and payments but not supplier information
  • Implement a Web-based version of Oracle AP that allows Web viewing of AP information
  • Give AP inquiry-only access, only though Oracle responsibilities (Correct)
  • Give access to all AIP forms and reports

Answer : Give AP inquiry-only access, only though Oracle responsibilities

Identify three statements that are true for setting up withholding tax for a supplier and supplier site. (Choose three.)
A. Withholding tax is an account distribution process.
B. The withholding tax option can be overwritten at the invoice level.
C. If a supplier does not allow withholding tax, you cannot allow withholding tax for any of the supplier's sites.
D. Payables defaults the withholding tax group from the supplier site to the invoice and then to invoice distribution.
E. The Payables setup option, allow withholding tax, can make suppliers and supplier sites subject to withholding tax. 


Options are :

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

Answer : C,D,E

Which three statements properly describe the use of distribution sets? (Choose three.)

A. You can assign a distribution set to an invoice when you enter it
B. You can use full distribution sets to create distributions with no set percentage amounts
C. You can use skeletal distribution sets to create distributions with set distributions amount
D. You can use a distribution set to automatically enter distribution for an invoice when you are not matching it to a purchase order
E. You can assign a default distribution set to a supplier site so Payables would use it for every invoice you enter for that supplier site


Options are :

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

Answer : A,D,E

When you use invoice Approval workflow, which setup options in the Payables options form are related to invoices? (Choose three.)
A. Allow Force Approval
B. Use Invoice Approval Workflow
C. Require Validation Before Approval
D. Allow Document Sequencing Override
E. Build Discount Accounts when matching


Options are :

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

Answer : A,B,C

Which three programs submit their own reports, without any user intervention? (Choose three.)
A. Invoice Matching
B. Invoice Cancellation
C. Payment Confirmation
D. Expense Report Import
E. Invoice Validation


Options are :

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

Answer : C,D,E

Which two methods would you recommend for preventing the creation of duplicate suppliers? (Choose two.)
A. Run the Vendor Audit Report
B. Recommend standard naming conventions for suppliers
C. Run the supplier listing by supplier name report to check the duplicates
D. Query the supplier in the supplier form before creating a new supplier 


Options are :

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

Answer : B,D

Why would you use the clearing payment method? 


Options are :

  • To generate a payment document to clear a credit memo
  • To account for inter company expenses when you disburse funds through banks
  • To generate a payment document to clear a debit memo
  • To account for inter company expenses when you do not disburse funds through banks (Correct)

Answer : To account for inter company expenses when you do not disburse funds through banks

To manually enter tax details for an item, freight, miscellaneous, or prepayment lines, you must complete seven fields. Name three. (Choose three.) 

A. industry
B. tax amount
C. tax regime
D. commodity
E. supplier site


Options are :

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

Answer : B,C,E

Self-assessed tax amounts are taxes that you are liable for, but do not appear on the invoice, such as use tax. To use self -assessed taxes, enable the Set for Self Assessment/Reverse Charge option when you define the _____ in the Party Tax Profile.


Options are :

  • tax registration information (Correct)
  • set allow tax recovery
  • recoverable tax information
  • set allow manual tax only lines

Answer : tax registration information

The transaction Sweep Report generated as part of the payables close process shows some payments. What are the possible reasons? (Choose all that apply.)
A. The payments were voided
B. The checks associated with the payments were not printed
C. One or more of the invoices paid by the payments were not accounts
D. The cash account code combination of the payments has been disabled
E. The suppliers for which the payments have been made have deactivated


Options are :

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

Answer : C,D

Identify three statements that are true about E-Business Tax and Payables. (Choose three.)
A. In E-Business Tax, tax calculations are based on supplier's site defaults.
B. In E-Business Tax, there is one repository with detailed and fully allocated tax lines.
C. Payables is not integrated with E-Business Tax to provide tax services for invoices.
D. With E-Business Tax, you can account for recoverable taxes at the time and to the extent of payment in Payables.
E. Payables integrates with E-Business Tax to automatically determine and calculate the applicable tax lines for the invoices. 


Options are :

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

Answer : B,D,E

What are three prerequisites for interfacing payables invoice lines with Assets? (Choose three.)

A. There are no holds placed on the invoice
B. The invoice must be posted to General Ledger
C. The option ‘Track as Asset’ is selected in the Distributions from when entering an invoice
D. The invoice has been transferred to General Ledger
E. Distribution Account is Asset Clearing or CIP Account


Options are :

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

Answer : C,D,E

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