Oracle Financials Cloud: General Ledger 2021 Implementation Essentials (1Z0-1054-21) Free Practice Test

Question 1

Your customer is a financial Institution that needs to maintain average daily balances (ADB). Which two statements are true regarding this functionality in Fusion Applications?

A. When using ADB, you must define a daily calendar and assign it to your ADB ledger

B. Average balances are stored in the Essbase cube

C. ADB provides organizations with the ability to track average and end-of-day balances, report average balance sheets, and create custom reports using both actual and average balances

D. Average balances are maintained for both actual and budget balances

E. Average balances are stored for both subledger balances and general ledger balances

Correct Answer: C,D

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Question 2

You are implementing Financials Cloud and are using spreadsheets to load Legal Entities, Business Units, and Account Hierarchies. Which three setup objects can be loaded via a spreadsheet from Functional Setup Manager?

A. complete Accounting Configuration

B. setup data for Receivables and Payables product

C. chart of account values, accounting calendar, and ledger

D. Suppliers and Customers

E. Banks, Bank Accounts, and Branches

Correct Answer: C,D,E

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Question 3

Your enterprise structure has one ledger and two business units. Business unit one wants to enable budgetary control for Requisitioning only on Procure-to-Pay Business Functions and business unit two wants to enable budgetary control for Payable Invoicing only in Procure-to-Pay Business Functions.
Which two statements are correct? (Choose two.)

A. Define budgetary control at ledger level with Budgetary Control Exceptions for each business unit

B. While defining control for business unit two, enable control at Requisitioning and define the exceptions to only include invoicing

C. While defining control for business unit one, enable control at purchasing and define the exceptions to only include requisitioning

D. Define control for business unit two to disable control for Requisitioning, Purchasing, and Receiving

E. Define budgetary control at ledger level and only encumbrance control at the business units

F. While defining control for business unit one, disable control for Purchasing, Payable Invoicing, and Receiving

Correct Answer: A,E

Question 4

Budgetary control for account 5020 and 5021 has a budget of $90,000USD each for the year 2012. The accounts also have balances on obligation of $10,000 USD for each and an expenditure of $20,000 USD for each. A Fund of $50,000 USD is available for account 5010 only. You have run the Encumbrance Year End Carry Forward process for obligation from the last period of the year 2012 to the first period of year2013. Which statement is true?

A. If you have included 5020 and 5021 in the encumbrance rule, the budget balances $90,000 USD, obligation $10,000 USD and expenditure $20,000 USD only will be carried forward.

B. If you have included 5020 and 5021 in the encumbrance rule, then budget balances $90,000 USD, obligation $10,000 USD, and expenditure $20,000 USD, and the funds available $50,000 USD will be carried forward

C. The Encumbrance Year End Carry Forward process will run for all the accounts to carry forward the general ledger balances

D. If you have included 5020 and 5021 in the encumbrance rule, then only the obligation of $10,000 USD will be carried forward

E. If you have included 5020 and 5021 in the encumbrance rule, then obligation $10,000 USD and expenditure $20,000 USD only will be carried forward.

Correct Answer: D

Question 5

Your client has been using Budgetary Control for six months. Now, they want to use the: spend Authorization After opting in the new feature Spend Authorization with Budgetary Control, what additional field actions need to be accomplished to activate this feature? .

A. Enable spend authorization

B. Rebuild the Budgetary Control Cube.

C. Create a Payment Process Profile

D. Rebuild the GL Balances Cube

E. Enable Payment Request Subtypes

Correct Answer: A,B,E

Explanation: Only visible for TestSimulate members. You can sign-up / login (it's free).

Question 6

You are implementing Fusion Accounting Hub for your external Accounts Receivables system. The external system sends invoices billed and cash receipts in a flat file, along with the customer classification information. You want the accounting amounts to be tracked by customers too but you do not want to add a Customer segment to your chart of accounts. What is the solution?

A. Capture customer information as the source and develop a custom report using Online Transactional Business Intelligence (OTBI)

B. Use the Open Account Balances Listing report that has balances by customer

C. Use the Third Party Control Account feature

D. Use Supporting References to capture customer classification information

Correct Answer: D

Question 7

In Financial Cloud, which three reporting tools can be used to access General Ledger balances? (Choose three.)

A. Application Composer

B. Oracle Enterprise Repository

C. Financial Reporting Studio

D. Oracle Transactions Business Intelligence

E. Smart View

Correct Answer: C,D,E

Question 8

You set up a secondary ledger using the Manage Secondary Ledger task and selected a data conversion level of sub ledger. Which two actions should you now perform? (Choose two.)

A. Define Journal Conversation Rules that exclude sub ledgers

B. Define Supporting References with balances

C. Assign a Sub ledger Accounting Method to the secondary ledger

D. Ensure that the Accounting Calendar and Currency are the same as the Primary Ledger

E. Define Journal Conversation Rules that include sub ledgers in order to transfer sub ledger transactions

Correct Answer: C,E

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Oracle Financials Cloud: General Ledger 2021 Implementation Essentials (1Z0-1054-21) Free Practice Test