Oracle Oracle Financials Cloud 1Z0-1054-22 Questions & Answers

• Question 41:

  All of your subsidiaries can share the same ledger with their parent company and all reside on the same application instance.

  They do perform intercompany accounting. What is Oracle's recommended approach to performing consolidations?

  A. Use General Ledger's Financial Reporting functionality to produce consolidated reports by balancing segment where each report represents a different subsidiary. Any eliminating entries can be entered in yet another separate balancing segment

  B. Use Oracle Hyperion Financial Management for this type of complex consolidation

  C. Use General Ledger's Balance Transfer programs to transfer subsidiary ledger balances to the parent ledger, and then enter eliminating entries as a separate balancing segment in the parent ledger.

  D. Define multiple ledgers for consolidation and report on ledger set

  Correct Answer: A

  Oracle's recommended approach to performing consolidations when all of your subsidiaries can share the same ledger with their parent company and all reside on the same application instance is to use General Ledger's Financial Reporting functionality to produce consolidated reports by balancing segment where each report represents a different subsidiary. Any eliminating entries can be entered in yet another separate balancing segment. Therefore, option A is correct. Option B is incorrect because you don't need to use Oracle Hyperion Financial Management for this type of consolidation. Option C is incorrect because you don't need to use General Ledger's Balance Transfer programs to transfer subsidiary ledger balances to the parent ledger, and then enter eliminating entries as a separate balancing segment in the parent ledger. Option D is incorrect because you don't need to define multiple ledgers for consolidation and report on ledger set.

• Question 42:

  Your customer is implementing budgetary control with encumbrance accounting. Your customer has businesses in Australia, New Zealand, and Singapore with a ledger in each country with a Corporate chart of account instance that has four segments. Which three statements are true regarding the creation of a control budget? (Choose three.)

  A. The control budget structure has all the chart of account segments as budget segments

  B. Control budgets are always absolute to generate encumbrance accounting

  C. A control budget is associated to a ledger and creates three control budgets for Australia, New Zealand, and Singapore

  D. A control budget can allow override rules only if the control level is absolute

  E. A control budget can be associated with a different calendar than accounting calendar

  Correct Answer: BCE

  According to the Oracle documentation2, "Control budgets are always absolute to generate encumbrance accounting." Therefore, this is a true statement regarding the creation of a control budget.

  According to the Oracle documentation3, "You can associate a control budget with a different calendar than your accounting calendar." Therefore, this is also a true statement regarding the creation of a control budget.

• Question 43:

  When will Intercompany processing balance a journal using the accounts identified here for the UK Ledger?

  

  A. when there is a many-to-many journal and you want to use a clearing company

  B. when the journal is not balanced by the primary balancing segment value (BSV)

  C. when the journal is balanced by the primary BSV but not by second or third BSV

  D. when the journal is balanced by second balancing segment value

  Correct Answer: C

  Intercompany processing will balance a journal using the accounts identified here for the UK Ledger when the journal is balanced by the primary balancing segment value (BSV) but not by second or third BSV. A BSV is a segment in the chart of accounts that identifies a legal entity or business unit for which financial statements are prepared and balanced. A primary BSV is required for every ledger and is used to balance journal entries within a ledger. A secondary or tertiary BSV is optional and is used to balance journal entries across different dimensions other than the primary BSV, such as fund or region. Intercompany processing is a feature that enables intercompany transactions between different legal entities or business units within the same enterprise. Intercompany processing uses intercompany balancing rules to generate intercompany receivables and payables accounts for cross-ledger or cross-BSV journals. Intercompany processing will balance a journal using the accounts identified here for the UK Ledger when the journal is balanced by the primary BSV but not by second or third BSV, as this indicates that there is an intercompany transaction between different legal entities or business units within the UK Ledger that requires intercompany balancing. Intercompany processing will not balance a journal using the accounts identified here for the UK Ledger when there is a many-to-many journal and you want to use a clearing company, as this is a scenario that involves multiple legal entities or business units across different ledgers that requires a separate clearing company ledger to perform intercompany balancing. Intercompany processing will not balance a journal using the accounts identified here for the UK Ledger when the journal is not balanced by the primary BSV, as this is an invalid scenario that violates the accounting rules and prevents posting of the journal. Intercompany processing will not balance a journal using the accounts identified here for the UK Ledger when the journal is balanced by second balancing segment value, as this is an incomplete scenario that does not specify whether the journal is also balanced by primary and third BSV.

  Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Configure and Process Intercompany 12

• Question 44:

  You want to process multiple allocations at the same time. What feature do you use?

  A. RuleSets

  B. Formulas

  C. General Ledger journal entries

  D. Point of View (POV)

  Correct Answer: A

  you can use RuleSets to process multiple allocations at the same time. A RuleSet is a group of allocation rules that you can run together. Therefore, option A is correct. Option B is incorrect because formulas are used to define the basis of allocation, not to process multiple allocations. Option C is incorrect because General Ledger journal entries are used to record transactions, not to process multiple allocations. Option D is incorrect because Point of View (POV) is used to specify the source and target of allocation, not to process multiple allocations.

• Question 45:

  The expense account of airfare was erroneously assigned to the account type "Liability". Which method should you choose to fix the problem?

  A. Deactivate the value

  B. Run the "Segment Value Inheritance" program

  C. Run the "Correct Misclassified Account" program

  D. Run the "Update Balance Cube Chart of the Accounting Dimension" program

  Correct Answer: C

  you can use the Correct Misclassified Account program to change the account type of an account that was erroneously assigned. This program updates all balances for that account with the new account type and ensures that all existing reports reflect this change. Therefore, option C is correct. Option A is incorrect because deactivating the value will not change the account type of the account. Option B is incorrect because running the Segment Value Inheritance program will not change the account type of the account. Option D is incorrect because running the Update Balance Cube Chart of Accounting Dimension program will not change the account type of the account.

• Question 46:

  Which two methods can your General Ledger accountants use to more easily view large amounts of data contained in the tables in their work areas? (Choose two.)

  A. Use the Freeze feauture on the tables to scroll through large amounts of data

  B. Run a Business Intelligence Publisher report with Excel as the output format

  C. Export the table to Excel

  D. Detach the table to resize it to the maximum size of the monitor.

  Correct Answer: AC

  you can use the Freeze feature on the tables to scroll through large amounts of data. The Freeze feature allows you to lock one or more columns or rows so that they remain visible as you scroll through the table. Therefore, option A is correct. You can also export the table to Excel to view large amounts of data. The Export feature allows you to download the table data as an Excel file that you can open and manipulate offline. Therefore, option C is correct. Option B is incorrect because running a Business Intelligence Publisher report with Excel as the output format will not help you view large amounts of data contained in the tables in your work areas. Option D is incorrect because detaching the table to resize it to the maximum size of the monitor will not help you view large amounts of data contained in the tables in your work areas.

• Question 47:

  Your Financial Analyst needs to interactively analyze General Ledger balances with the ability to drill down to originating transactions. Which three features facilitate this? (Choose three.)

  A. Sunburst reports

  B. Online Transactional Business Intelligence

  C. Account Inspector

  D. Account Monitor

  E. Smart View

  Correct Answer: CDE

  The three features that facilitate interactive analysis of General Ledger balances with the ability to drill down to originating transactions are Account Inspector, Account Monitor, and Smart View. Account Inspector is a tool that allows you to

  select an account or an account group and view its balance and components, such as subledger details, journal lines, and supporting references. You can also drill down to the underlying transactions and subledger applications. Account

  Monitor is a tool that allows you to monitor key account balances in real time and compare them to predefined thresholds. You can also drill down to the underlying transactions and subledger details. Smart View is an Excel add-on that allows

  you to view and analyze financial data from General Ledger Cloud using Essbase cubes. You can also drill down from summary balances to journal details and subledger transactions. Sunburst reports are not a feature that facilitates

  interactive analysis of General Ledger balances with the ability to drill down to originating transactions, as they are graphical reports that show data distribution across different dimensions and hierarchies, but do not provide drill down

  capabilities. Online Transactional Business Intelligence (OTBI) is not a feature that facilitates interactive analysis of General Ledger balances with the ability to drill down to originating transactions, as it is a reporting tool that allows you to

  create custom reports using real-time transactional data from various sources, but does not provide drill down capabilities.

  Reference: Oracle Financials Cloud:

  General Ledger 2022 Implementation Professional Objectives-Use Oracle Transactional Business Intelligence (OTBI) 12

• Question 48:

  Which two statements are true regarding the Intercompany Reconciliation Report? (Choose two.)

  A. You can only drill down to the general ledger journal and then from there to the subledger journal entry.

  B. The report includes Ledger balancing lines generated when the primary balancing segment value (BSV) is in balance, but either the second or third BSVs are not.

  C. The report can be run using an additional currency and conversion rate that converts all amounts into a common currency for comparison.

  D. The report displays the intercompany receivables and intercompany payables balances in summary for a period.

  E. The report displays all clearing company balancing lines for a period.

  Correct Answer: BC

  According to the Oracle documentation12, the Intercompany Reconciliation Report can be run using an additional currency and conversion rate that converts all amounts into a common currency for comparison (option C). The report also includes ledger balancing lines generated when the primary balancing segment value is in balance, but either the second or third balancing segment values are not (option B). Option A is incorrect because you can drill down to the general ledger journal, subledger accounting entry, and source receivables or payables transaction2. Option D is incorrect because the report displays the intercompany receivables and intercompany payables balances in summary for a period, and any differences between them1. Option E is incorrect because the report does not display clearing company balancing lines2.

• Question 49:

  In which two ways can your users personalize the Springboards and Work Areas to suit their individual working styles? (Choose two.)

  A. They can format certain tables by hiding and showing columns, moving columns, and resizing columns

  B. Users have very little control configuring their Springboards and Work Areas; they can only resize columns

  C. They can have the System Administrator configuring pages for them using Page Composer

  D. They can use "+" under the Apps section of the News Feed homepage

  Correct Answer: AD

  According to Oracle documentation2, your users can personalize the Springboards and Work Areas to suit their individual working styles in these two ways:

  They can format certain tables by hiding and showing columns, moving columns, and resizing columns, and they can use "+" under the Apps section of the News Feed homepage. Springboards and Work Areas are user interface components

  that enable users to access tasks and information relevant to their roles. Users can customize these components by adding or removing tiles, changing layouts, filtering data, and formatting tables. Therefore, options A and D are correct.

  Option B is incorrect because users have more control over configuring their Springboards and Work Areas than just resizing columns. Option C is incorrect because users do not need to have the System Administrator configuring pages for

  them using Page Composer.

• Question 50:

  Your new accountants have been making mistakes in reconciling accounts assigned to them. Your account balances have either spiked or dropped 30-40% every period due to human error. This causes delays in reconciliation.

  What feature can you use to be proactively notified of account anomalies in a more timely manner?

  A. Account Monitor

  B. Financial Reports with Embedded charts

  C. Smart View

  D. Account Inspector and its charts

  Correct Answer: A

  Account Monitor is a feature 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. Account Monitor helps you to identify and resolve reconciliation issues in a timely manner. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Monitor Account Balances 12