Oracle 1Z0-1054-22 Online Practice Questions and Exam Preparation

Oracle 1Z0-1054-22 Online Questions & Answers

• Question 101:

  Which tool can you use to create a Financial Income Statement?

  A. One View Reporting
  B. PS/nVision
  C. Account Inspector
  D. Rapid Implementation Enterprise Structures setup
  C. Account Inspector

  ---

  Explanation/Reference:

  Account Inspector is a tool that allows you to create a Financial Income Statement using data from General Ledger Cloud. You can select an income statement account or an account group and view the account balance and its components, such as subledger details, journal lines, and supporting references. You can also drill down to the underlying transactions and subledger applications. You can customize the layout and appearance of the income statement and export it to Excel or PDF. One View Reporting is a tool that allows you to create reports using data from Oracle E-Business Suite applications, not Oracle Financials Cloud. PS/nVision is a tool that allows you to create reports using data from PeopleSoft applications, not Oracle Financials Cloud. Rapid Implementation Enterprise Structures setup is a tool that allows you to set up enterprise structures for Oracle Financials Cloud, not create financial statements. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Create Financial Reports 12

• Question 102:

  The current implementation project covers Financials (with Fixed Assets and Expenses) with operations planned in three countries (USA, Italy, and India).

  Which three labels are required when designing the chart of account structure for this project? (Choose three.)

  A. Primary Balancing
  B. Intercompany Segment
  C. Secondary Balancing
  D. Cost center
  E. Natural Account
  A. Primary Balancing
  D. Cost center
  E. Natural Account

  ---

  Explanation/Reference:

  The three labels that are required when designing the chart of account structure for this project are Primary Balancing, Cost center, and Natural Account. A chart of account structure is composed of segments that represent different dimensions of accounting information, such as company, department, account, or project. Each segment has a label that indicates its function or purpose within the chart of accounts. The Primary Balancing label is required for the segment that identifies the legal entity or business unit for which financial statements are prepared and balanced. The Cost center label is required for the segment that identifies the organizational unit or function that incurs expenses or generates revenues. The Natural Account label is required for the segment that identifies the nature of an account, such as asset, liability, revenue, or expense. The Intercompany Segment label is not required when designing the chart of account structure for this project, as this is an optional label for the segment that identifies intercompany transactions between different legal entities or business units within the same enterprise. The Secondary Balancing label is not required when designing the chart of account structure for this project, as this is an optional label for the segment that identifies an additional balancing dimension other than the primary balancing segment, such as fund or region. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Define Chart of Accounts 12

• Question 103:

  You want to be notified of anomalies in certain account balances in real time. What is the most efficient way to do this?

  A. Create an Account Group using Account Monitor
  B. Use Account Inspector
  C. Open a Smart View file saved on your desktop
  D. Perform an account analysis online
  A. Create an Account Group using Account Monitor

  ---

  Explanation/Reference:

  The most efficient way to be notified of anomalies in certain account balances in real time is to create an Account Group using Account Monitor. Account Monitor is a tool that allows you to monitor key account balances in real time and compare them to predefined thresholds. You can set up alerts to notify you when an account balance exceeds or falls below a certain percentage or amount. You can also drill down to the underlying transactions and subledger details to investigate the cause of the account anomalies. Using Account Inspector is not an efficient way to be notified of anomalies in certain account balances in real time, as this involves selecting an account or an account group and viewing its balance and components manually. Opening a Smart View file saved

• Question 104:

  Which two statements are true regarding the Translation process? (Choose two.)

  A. Any resulting offset from the translation is entered in the Cumulative Translation Adjustment account.
  B. If necessary, before submitting the Translation process, the Revaluation process should be completed.
  C. The Translation process should be run before posting Period Close adjustment entries.
  D. The Translation process can only be used for translating the balances of Secondary ledgers.
  E. The Translation process can only be used to translate balance sheet accounts.
  A. Any resulting offset from the translation is entered in the Cumulative Translation Adjustment account.
  B. If necessary, before submitting the Translation process, the Revaluation process should be completed.

  ---

  Explanation/Reference:

  According to Oracle documentation1, the following statements are true regarding the Translation process: Any resulting offset from the translation is entered in the Cumulative Translation Adjustment account, and if necessary, before submitting the Translation process, the Revaluation process should be completed. The Translation process enables you to translate balances from one currency to another for reporting purposes. The Translation process calculates any difference between the translated balance and the entered balance and posts it to the Cumulative Translation Adjustment account. The Revaluation process enables you to adjust balances denominated in foreign currencies to reflect current exchange rates. The Revaluation process should be completed before the Translation process to ensure that the balances are accurate. Therefore, options A and B are correct. Option C is incorrect because the Translation process should be run after posting Period Close adjustment entries. Option D is incorrect because the Translation process can be used for translating the balances of primary ledgers, secondary ledgers, and reporting currencies. Option E is incorrect because the Translation process can be used to translate both balance sheet accounts and income statement accounts.

• Question 105:

  You need to define a chart of accounts that includes an intercompany segment. Your customer plans to use segment value security rules for the Company segment.

  What is Oracle's recommended method to define this chart of accounts?

  A. Define the intercompany segment with a default value.
  B. Share the same value set for the company and intercompany segments.
  C. Define the company segment and assign both the primary balancing segment and intercompany segment labels.
  D. Create two different value sets for the company and intercompany segments.
  B. Share the same value set for the company and intercompany segments.

  ---

  Explanation/Reference:

  According to Oracle documentation3, Oracle's recommended method to define a chart of accounts that includes an intercompany segment when your customer plans to use segment value security rules for the Company segment is to share the same value set for the company and intercompany segments. Sharing the same value set enables you to use segment value security rules for both segments and ensures that the values in both segments are consistent. Therefore, option B is correct. Option A is incorrect because defining the intercompany segment with a default value does not enable segment value security rules for the intercompany segment. Option C is incorrect because defining the company segment and assigning both the primary balancing segment and intercompany segment labels does not enable segment value security rules for the intercompany segment. Option D is incorrect because creating two different value sets for the company and intercompany segments does not ensure that the values in both segments are consistent.

• Question 106:

  You need to set up a calendar for the year Apr-XX to Mar-YY where YY is the following year, and you would like the periods to be named according to the year they fall in.

  What format should you choose?

  A. Fiscal Year
  B. Calendar Year
  C. Period
  D. Year
  A. Fiscal Year

  ---

  Explanation/Reference:

  According to Oracle documentation3, when you need to set up a calendar for the year Apr-XX to Mar-YY where YY is the following year, and you would like the periods to be named according to the year they fall in, you should choose Fiscal Year as the format. A Fiscal Year format enables you to define periods based on fiscal years that span two calendar years. Therefore, option A is correct. Option B is incorrect because a Calendar Year format defines periods based on calendar years that start on January 1st and end on December 31st. Option C is incorrect because a Period format defines periods based on any number of days or weeks. Option D is incorrect because a Year format defines periods based on calendar years that start on any month other than January and end on any month other than December.

• Question 107:

  You have set up a supporting reference with balances to capture revenue by account manager.

  Which option should you use to view the supporting reference balances?

  A. an Account Group
  B. an OTBI analysis
  C. a SmartView analysis
  D. General Ledger inquiries and reports
  D. General Ledger inquiries and reports

  ---

  Explanation/Reference:

  According to Oracle documentation2, the option you should use to view the supporting reference balances is General Ledger inquiries and reports. Supporting reference balances are maintained at the account combination level for each supporting reference that you define. You can view these balances using General Ledger inquiries and reports, such as Account Inspector, Account Monitor, Smart View, Financial Reporting Studio, and OTBI. Therefore, option D is correct. Option A is incorrect because an Account Group is not an option to view the supporting reference balances. Option B is incorrect because an OTBI analysis is not an option to view the supporting reference balances. Option C is incorrect because a SmartView analysis is not an option to view the supporting reference balances.

• Question 108:

  Which subject area has been enhanced to allow you to drill down from OTBI General Ledger Reports to a General Ledger journal?

  A. General Ledger-Journal Transaction Balances Real Time
  B. General Ledger -Journal Balances Real Time
  C. General Ledger -Summary Journals Real Time
  D. General Ledger -Journals Real Time
  D. General Ledger -Journals Real Time

  ---

  Explanation/Reference:

  you can use the General Ledger-Journals Real Time subject area to drill down from OTBI General Ledger Reports to a General Ledger journal. This subject area provides information about journal entries and journal batches. Therefore, option D is correct. Option A is incorrect because the General Ledger-Journal Transaction Balances Real Time subject area provides information about journal transaction balances by ledger, chart of accounts, and currency. Option B is incorrect because the General Ledger-Journal Balances Real Time subject area provides information about journal balances by ledger, chart of accounts, and currency. Option C is incorrect because the General Ledger-Summary Journals Real Time subject area provides information about summary journals by ledger, chart of accounts, and currency.

  https://www.oracle.com/webfolder/technetwork/tutorials/tutorial/cloud/r13/wn/r13-2018-financials-wn.htm#F4376

• Question 109:

  Your customer requires physical invoices to be generated in Payables Cloud and Receivables Cloud for the Intercompany payables and receivables transactions. Which two statements are correct with regards to setting this up? (Choose two.)

  A. You only need to assign the Legal Entity and Organization Contact
  B. You can only associate one Intercompany Organization per Legal Entity
  C. You must have implemented Payables Cloud and Receivables Cloud
  D. You must assign the corresponding Receivables and Payables Business Units
  C. You must have implemented Payables Cloud and Receivables Cloud
  D. You must assign the corresponding Receivables and Payables Business Units

  ---

  Explanation/Reference:

  To generate physical invoices for intercompany payables and receivables transactions, you must have implemented Payables Cloud and Receivables Cloud. You must also assign the corresponding Receivables and Payables Business Units to the intercompany organizations that participate in the intercompany transactions. You do not need to assign the legal entity and organization contact, as these are optional fields. You can associate multiple intercompany organizations per legal entity, as long as they belong to different business units. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Configure and Process Intercompany 12

• Question 110:

  You have noticed that a lot of erroneous address data is being saved. You want to ensure that only valid addresses are entered in the system.

  How do you achieve this?

  A. Redefine the location structure.
  B. Redefine the geography hierarchy.
  C. Define the geography validation for country option to Error.
  D. Define the geography validation for country option to No Validation.
  C. Define the geography validation for country option to Error.

  ---

  Explanation/Reference:

  To ensure that only valid addresses are entered in the system, you should define the geography validation for country option to Error. This option determines how geography validation is performed when users enter addresses in various applications. If you set this option to Error, then users can only enter addresses that match predefined geographies in the Geography Hierarchy. If users enter invalid addresses, they will receive an error message and will not be able to save the address until they correct it. You do not need to redefine the location structure, as this is a feature that defines how locations are identified and organized in Oracle Fusion Applications. You do not need to redefine the geography hierarchy, as this is a feature that defines how geographies are structured and validated in Oracle Fusion Applications. You do not need to define the geography validation for country option to No Validation, as this option disables geography validation and allows users to enter any address without checking against predefined geographies. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Define Enterprise Structures 12