1Z0-516 Oracle EBS R12.1 General Ledger Essentials Exam Set 7

XYZ Corporation has five segments in its accounting flexfield. For a special profit-and-loss report, they want to sort by the fourth segment, which is "product." Select the element that would meet this need. 


Options are :

  • column set
  • row set
  • content set
  • row order (Correct)

Answer : row order

Select two actions available in Oracle General Ledger. (Choose two.)
A. deleting posted journals
B. exporting data to subsidiary ledgers
C. importing data from subsidiary ledgers
D. consolidating balances in subsidiary ledgers
E. consolidating balances from multiple ledgers 


Options are :

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

Answer : C,E

John has created two ledgers: one primary and one secondary. The primary ledger stores transactional data and the secondary ledger stores only adjustments. The secondary ledger shares the same chart of accounts, accounting calendar or period-type combination, and currency as the associated primary ledger. John wants to obtain a complete accounting representation that includes both transactional data and adjustments while running reports. Identify the best option. 


Options are :

  • Merge the primary ledger and the secondary ledger, and run reports.
  • Use ledger sets to combine the adjustments-only secondary ledger with the primary ledger when running reports. (Correct)
  • Transfer adjustment data from the secondary ledger to the primary ledger while running reports.
  • Transfer transactional data from the primary ledger to the secondary ledger while running reports.

Answer : Use ledger sets to combine the adjustments-only secondary ledger with the primary ledger when running reports.

You have a new employee in the buying department. She set up a number of item numbers and chose not to flag them for invoicing. Several transactions have been completed in Order Management by using these new item numbers. What effect would this event have on the
Receivables closing process?


Options are :

  • The transactions would prevent Receivables from being closed
  • The transactions would be flagged as exceptions. (Correct)
  • The transactions would prevent Order Management from being closed.
  • The transactions would be deleted from the system.

Answer : The transactions would be flagged as exceptions.

ABC Company in the United Kingdom has three subsidiaries in three different countries. It consolidates the accounts of all subsidiaries and the headquarters by using the average balances. John is new to Oracle General Ledger. He has just joined ABC Company. He needs to consolidate for the current month. On completion of the consolidation, John was not able to tally the consolidated figures with the ledgers. Select two reasons why John failed to see the correct balances. (Choose two.)

A. Posting of the consolidation journals may have failed.
B. He forgot to add the prior periods consolidation in the current period.
C. Manual adjustment needed after every consolidation was not performed.
D. John may not have reversed the prior periods consolidation in the current period. 


Options are :

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

Answer : A,D

Payables lists four seeded payment methods. They are check, outsourced check, electronic, and wire. Choose the correct description for wire. 


Options are :

  • transmission of payment information to an external party, such as your bank, that prints checks on your behalf
  • an EFT, EDI, or XML to the bank of a supplier
  • a paper check to print and send to a supplier
  • a funds transfer initiated by contacting the bank and requesting wire payment to the bank of a supplier (Correct)

Answer : a funds transfer initiated by contacting the bank and requesting wire payment to the bank of a supplier

You are working on an implementation for Accounts Payable for ABC Inc. Your client has three requirements:
1. They want to be able to pay only certain types of suppliers by batch.
2. Each payment batch must be under $100,000 USD, or the batch automatically gets canceled without user intervention.
3. Each single payment for a supplier site must be between $10 USD and $10,000 USD, or the payment is automatically not issued. To meet the above requirements, you perform these steps:
a) Set up suppliers with pay groups for each type, and use them when running the payment batch.
b) Set up the payment batch with Maximum Outlay equal to $100,000 USD. 

c) Set up the payment batch with Maximum/Minimum payments as $10 USD and $10,000 USD. Which requirements have you met? 


Options are :

  • 1,2 and 3
  • 1 and 3 (Correct)
  • 2 and 3
  • 1 and 2

Answer : 1 and 3

Select two steps that are NOT elements of creating a Financial Statement Generator (FSG) report in Oracle General Ledger (Choose two.)
A. Attach the fiscal calendar.
B. Define rows and columns.
C. Build a report by using rows and columns.
D. Specify the default ledger for ledger sets.
E. Determine which rows and columns make up your report. 


Options are :

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

Answer : A,D

Scott, the CFO at ABC Company in the USA, wants to present the annual income statement to the board of directors of the company. ABC Company engages in many exports and import activities and follows the policy to revalue all its transactions in foreign currency with the current market rates. Scott requests George, the head accountant of the company, to revalue all foreign currency transactions done during the year. Select two prerequisites that George must comply with to ensure that the revaluation is done as desired. (Choose two.)
A. Define accounts for realized gains and realized losses.
B. Define accounts for unrealized gains and unrealized losses.
C. Define the weights for each currency used for doing transactions.
D. Define a batch under which the revaluation journals would be stored.
E. Define a revaluation rate for each currency for each period or date for which the revaluation must be run. 


Options are :

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

Answer : B,E

Select three statements that apply to Interface Data Transformer (IDT). (Choose three.)
A. It ensures reapplication of the same rules each time you transfer.
B. IDT provides greater flexibility by performing no validation on the imported data.
C. User-defined conditions enable you to control when transformation rules must be applied.
D. IDT provides automatic data conversion that converts disparate data formats into an Oracle format.
E. It makes exporting of data from Oracle General Ledger into external feeder systems much easier and less time consuming. 


Options are :

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

Answer : A,C,D

Identify three setup options that are defined in the Financial Options window. (Choose three.)
A. interest
B. retainage
C. miscellaneous
D. expenses clearing
E. expense AP accrual account 


Options are :

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

Answer : B,C,D

Identify three statements that are correct for the multi-currency functionality of Oracle General Ledger. (Choose three.)

A. Enter transactions and reports in any currency.

B. Enter exchange rates online and automatically.

C. Translate only actual but not budgeted balances.

D. Translate only budgeted but not actual balances.

 E. Use daily, period end, average, and historical rates. 


Options are :

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

Answer : A,B,E

Select three activities that must be performed to complete the setup of the key accounting flexfield. (Choose three.)
A. Create aliases.
B. Define a value set.
C. Define security rules.
D. Define an account structure.
E. Define valid segment values.
F. Create account combinations. 


Options are :

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

Answer : B,D,E

Identify two correct statements about the consolidation feature of Oracle General Ledger. (Choose two.)
A. Both budget and actual balances can be consolidated.
B. Consolidation is possible only when the subsidiaries use multiple Oracle application instances.
C. You can consolidate balances only when there are separate ledgers for different companies.
D. You can maintain multiple companies with similar or different accounting structures and consolidate their results for meaningful financial reporting. 


Options are :

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

Answer : A,D

In the course of implementing Oracle General Ledger, you and your customer have created a number of Financial Statement Generator reports in a test environment. These reports have been tested and you are now ready to create them in your production environment. You are ready to run the FSG Transfer program. What two requirements are necessary to run this program? (Choose two.)
A. Database links must be defined.
B. The same ledgers must be defined in both instances.
C. Enable the FSG: AutoCopy profile option in the production environment.
D. The same row and column sets must exist in the production environment. 



Options are :

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

Answer : A,B

Select three levels where additional reporting currency representations can be maintained. (Choose three.)
A. batch 

B. journal
C. balance
D. subledger


Options are :

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

Answer : B,C,D

With Oracle Cash Management, you can reconcile payments created in Payables to your bank statements. When you reconcile payments using Oracle Cash Management, Cash Management updates the status of payments. Select the new status. 


Options are :

  • issued
  • negotiable
  • updated
  • reconciled (Correct)

Answer : reconciled

Select the correct sequence of tasks required for period closing in Oracle General Ledger.
1. Verify that all journals are posted.
2. Close the period of each subledger.
3. Run the Trial Balance report and other month-end reports. 

4. Close the period and open the next period.
5. Perform reconciliation of subsidiary ledgers.
6. Transfer and import data from all subledgers. 


Options are :

  • 6, 5, 2, 1, 4, 3
  • 6, 5, 2, 1, 3, 4 (Correct)
  • 6, 5, 1, 3, 2, 4
  • 3, 2, 1, 6, 4, 5

Answer : 6, 5, 2, 1, 3, 4

Choose the maximum number of secondary ledgers that can be assigned to a primary ledger. 


Options are :

  • unlimited (Correct)
  • two per primary ledger
  • one per primary ledger
  • one per primary ledger with a reporting currency

Answer : unlimited

Select three statuses of the consolidation workbench. (Choose three.)
A. posted
B. entered
C. exported
D. reversed
E. transferred 


Options are :

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

Answer : A,D,E

When you change a summary account template funds check level from None to Advisory or Absolute, you need to _____.


Options are :

  • delete the original template and then recreate it for the appropriate funds check level (Correct)
  • change the time period on the template to Earliest Period to identify the begin date of the new funds check level
  • do nothing else; no additional work is needed
  • complete the required data on the template for the new funds check level

Answer : delete the original template and then recreate it for the appropriate funds check level

What is true about the budgetary control summary account template's indication that funds are available?


Options are :

  • It indicates that funds are available when the result is greater than one, regardless of the balance type
  • When the summary account template is a Debit balance type, the amount is negative; when the template is a Credit balance type, the amount is positive
  • When the summary account template is a Debit balance type, the amount is positive; when the template is a Credit balance type, the amount is negative (Correct)
  • It indicates that funds are available when the result is less than one, regardless of the balance type

Answer : When the summary account template is a Debit balance type, the amount is positive; when the template is a Credit balance type, the amount is negative

ABC.com, the GL accountant, says that he has heard about the budget upload functionality of Oracle GL and he is eager to test it. She is unable to test it in the CRP instance. What is your explanation?


Options are :

  • Budget journals are required at the set of books level (Correct)
  • The budget can be uploaded
  • The GL account code combination is not valid.
  • The budget dates in the budget organization have a different date range.

Answer : Budget journals are required at the set of books level

ABC.com is getting ready to complete its month-end process. It needs to create a profit and loss statement and it wants to use the Financial Statement Generator feature to create the report. Which two elements are required to create the report? (Choose two.)
A. Workbook
B. Column Set
C. Row Set
D. Content Set
E. Report Set 


Options are :

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

Answer : B,C

After discussions with the client, the implementation team decides that the GL Auto allocation functionality would help satisfy the clients requirements to automatically allocate the rent and other expenses to all the departments based on the defined formula. The GL accountant comes to you with a requirement that the approver of the journal should be automatically informed once the journal is generated. What is your response? 


Options are :

  • Auto allocation uses Workflow, so there is no problem in satisfying this requirement. (Correct)
  • It is not possible to satisfy this requirement
  • Dynamic Insert must be enabled to satisfy this requirement.
  • Cross-validation rules must be defined to satisfy this requirement.

Answer : Auto allocation uses Workflow, so there is no problem in satisfying this requirement.

ABC.com has a legal entity in each of its business operations in the United States, Canada, Malaysia, Singapore, and Italy. The controller in Italy advises that the corporation must use the Italian statutory accounts as its natural accounts. The corporation decides to define five sets of books (one for each country) but wants to use a single, global chart of accounts structure. Choose a possible design (for the sets of books) that uses a single, global chart of accounts structure, and also meets the Italian controller's requirement. 



Options are :

  • The list of values in the Account segment includes a range reserved for Italy. (Correct)
  • The chart of accounts structure uses a different Value Set for the Account segment for Italy.
  • The chart of accounts structure contains an extra segment for Italy
  • The length of the Account segment for Italy is different from that for the other countries

Answer : The list of values in the Account segment includes a range reserved for Italy.

A client has a requirement to allocate the rent and other expenses to all the departments based on the formula defined in GL Mass Allocation. Mario, the GL accountant, comes to you and asks whether the Mass Allocation program checks cross-validation rules, because this checking would help to prevent the creation of invalid accounts. What is your response?


Options are :

  • You can customize the workflow, to enable the program to check cross-validation rules.
  • The program does NOT check cross-validation rules. (Correct)
  • Allow Dynamic Insert must not be enabled, and then the program can check cross-validation rules
  • Whether or not the program checks cross-validation rules depends on the formula.

Answer : The program does NOT check cross-validation rules.

What is the effect of summary accounts on the efficiency of the posting process?


Options are :

  • Use of summary accounts neither increases nor decreases the efficiency of the posting process.
  • Use of summary accounts increases the efficiency of the posting process
  • There is no effect, because summary accounts do not use the posting process to accumulate values.
  • Use of summary accounts decreases the efficiency of the posting process. (Correct)

Answer : Use of summary accounts decreases the efficiency of the posting process.

Which three are true about the Global Consolidation System? (Choose three.)
A. consolidates data from legacy feeder system
B. consolidation process creates consolidated journal entries in both parent and subsidiary sets of books
C. performs multidimensional analysis of consolidated financial data using Oracle Financial Analyzer
D. automatically generates journal entries to eliminate inter company balances based on defined rules


Options are :

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

Answer : A,C,D

ABC.com has three companies in Canada, two companies in the United States, two companies in Singapore, and one company in Belgium. All the companies, except for one in Canada, have the same fiscal year-end calendar. ABC Enterprise wants to use a common chart of accounts structure globally and set up each company as a balancing segment value. What is the minimum  number of sets of books that should be defined?


Options are :

  • 5 (Correct)
  • 8
  • 7
  • 4

Answer : 5

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