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

Oracle 1Z0-1054-22 Online Questions & Answers

• Question 61:

  Your customer uses Financials Cloud, Projects, Inventory, and SCM.

  Which two statements are true regarding intercompany accounting for these products? (Choose two.)

  A. Each product has its own Intercompany Accounting feature that needs to be configured separately.
  B. In Financials Cloud, Intercompany Balancing Rules are used to balance both cross-ledger allocation journals and single-ledger journals.
  C. Intercompany Balancing Rules are defined centrally and applied across Financials and Projects.
  D. Intercompany balancing rules in General Ledger need to be mapped with the intercompany configuration in each product.
  A. Each product has its own Intercompany Accounting feature that needs to be configured separately.
  C. Intercompany Balancing Rules are defined centrally and applied across Financials and Projects.

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  Explanation/Reference:

  According to Oracle documentation1, the following statements are true regarding intercompany accounting for Financials Cloud, Projects, Inventory, and SCM: Each product has its own Intercompany Accounting feature that needs to be configured separately, and Intercompany Balancing Rules are defined centrally and applied across Financials and Projects. Intercompany accounting is the process of recording transactions between related entities within an enterprise or between groups in the same legal entity. Each product has its own Intercompany Accounting feature that enables you to create, process, and reconcile intercompany transactions. Intercompany Balancing Rules are used to generate balancing entries for journals that are out of balance by legal entity or primary balancing segment values. Intercompany Balancing Rules are defined in General Ledger and applied across Financials and Projects. Therefore, options A and C are correct. Option B is incorrect because Intercompany Balancing Rules are not used to balance cross-ledger allocation journals. Option D is incorrect because Intercompany balancing rules in General Ledger do not need to be mapped with the intercompany configuration in each product.

• Question 62:

  The Accounting Manager requests that a schedule be created to automatically post journals from subledgers at different times. Which journal attribute should you use to set the automatic posting criteria?

  A. Journal Source
  B. Journal Category
  C. Journal Batch
  D. Journal Description
  A. Journal Source

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  Explanation/Reference:

  The Journal Source attribute is used to set the automatic posting criteria for journals from subledgers. You can specify whether to post journals automatically or manually based on their source, such as Payables, Receivables, or Projects4.

• Question 63:

  You are creating values for the chart of account value set that you are planning to use for the account segment within your Chart of Accounts.

  You are not able to assign an Account Type. What is the reason for this?

  A. You have not set the Allow Budgeting attribute for the value set
  B. The Account Type qualifier has not been enabled when defining the value set
  C. You are creating values before assigning the value set to the structure
  D. You have not set the Allow Posting attribute for the value set
  C. You are creating values before assigning the value set to the structure

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  Explanation/Reference:

  According to Oracle documentation1, the reason why you are not able to assign an Account Type when creating values for the chart of account value set is that you are creating values before assigning the value set to the structure. The Account Type attribute is only available after you assign the value set to a chart of accounts structure instance. The Account Type attribute determines how an account is used and reported in General Ledger. Therefore, option C is correct. Option A is incorrect because you do not need to set the Allow Budgeting attribute for the value set to assign an Account Type. Option B is incorrect because the Account Type qualifier does not need to be enabled when defining the value set to assign an Account Type. Option D is incorrect because you do not need to set the Allow Posting attribute for the value set to assign an Account Type.

• Question 64:

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

  A. Ensure that the Accounting Calendar and Currency are the same as the Primary Ledger
  B. Define Journal Conversion Rules that include subledgers in order to transfer subledger transactions
  C. Define Journal Conversion Rules that exclude subledgers
  D. Assign a Subledger Accounting Method to the secondary ledger
  E. Define Supporting References with balances
  B. Define Journal Conversion Rules that include subledgers in order to transfer subledger transactions
  D. Assign a Subledger Accounting Method to the secondary ledger

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  Explanation/Reference:

  you need to define journal conversion rules that include subledgers in order to transfer subledger transactions when you set up a secondary ledger using the Manage Secondary Ledger task and selected a data conversion level of subledger. Journal conversion rules define how journal entries are converted from one ledger to another ledger. Therefore, option B is correct. You also need to assign a Subledger Accounting Method to the secondary ledger when you set up a secondary ledger using the Manage Secondary Ledger task and selected a data conversion level of subledger. A Subledger Accounting Method defines how accounting entries are generated for subledger transactions. Therefore, option D is correct. Option A is incorrect because you don't need to ensure that the Accounting Calendar and Currency are the same as the Primary Ledger when you set up a secondary ledger using the Manage Secondary Ledger task and selected a data conversion level of subledger. You can have different Accounting Calendar and Currency for your secondary ledger. Option C is incorrect because you don't need to define journal conversion rules that exclude subledgers when you set up a secondary ledger using the Manage Secondary Ledger task and selected a data conversion level of subledger. You need to include subledgers in your journal conversion rules. Option E is incorrect because you don't need to define Supporting References with balances when you set up a secondary ledger using the Manage Secondary Ledger task and selected a data conversion level of subledger. Supporting References are used to store additional information for journal lines.

• Question 65:

  You are defining an income statement report using Financial Reporting Studio. Users of the report need to be able to analyze the balances directly from the report.

  What should you enable to allow this?

  A. Nothing. All report are drillable
  B. Drill Through in Grid Properties
  C. Drill Down in Report Functions
  D. Allow Expansion in Report Functions
  B. Drill Through in Grid Properties

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  Explanation/Reference:

  To enable users of the income statement report to analyze the balances directly from the report, you should enable Drill Through in Grid Properties. This option allows users to drill down from summary balances to journal details and subledger transactions using Smart View or Financial Reporting Web Studio. You do not need to enable anything else, as all reports are drillable by default if Drill Through is enabled in Grid Properties. You do not need to enable Drill Down in Report Functions, as this option allows users to drill down within a report using different dimensions and hierarchies, but not to originating transactions. You do not need to enable Allow Expansion in Report Functions, as this option allows users to expand or collapse members within a report using different dimensions and hierarchies, but not to originating transactions.

  Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Create Financial Reports 12

• Question 66:

  Your customer is planning to have three balancing segments for generating balance sheets and income statements at cost center segment and program segment levels.

  Which two recommendations would you give your customer? (Choose two.)

  A. Additional intercompany rules will need to be defined for the two additional balancing segments
  B. Every journal where debits do not equal credits across the three balancing segments will result in the system generating extra journal lines to balance the entry
  C. Additional intercompany balancing and clearing options will need to be defined
  D. When entering journals manually, the customer will need to make sure that debits and credits are equal across all balancing segments because the system will not automatically balance the journal
  A. Additional intercompany rules will need to be defined for the two additional balancing segments
  B. Every journal where debits do not equal credits across the three balancing segments will result in the system generating extra journal lines to balance the entry

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  Explanation/Reference:

  Oracle's recommended approach to performing consolidations when you have three balancing segments for generating balance sheets and income statements at cost center segment and program segment levels is to use additional intercompany rules for the two additional balancing segments and additional intercompany balancing and clearing options. Intercompany rules define how intercompany transactions are accounted for across different balancing segments. Intercompany balancing and clearing options define how intercompany balances are eliminated or cleared during consolidation. Therefore, options A and B are correct. Option C is incorrect because you don't need to run balance transfer programs for this scenario. Option D is incorrect because you don't need to manually balance the journal entries across all balancing segments for this scenario.

  https://docs.oracle.com/cd/E25178_01/fusionapps.1111/e20375/F350915AN26721.htm

• Question 67:

  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.
  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.

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  Explanation/Reference:

  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 68:

  Management has added a requirement to segregate the duties of transferring journals to the General Ledger from the posting function. Which two new features allow this segregation? (Choose two.)

  A. Uncheck the Enable Posting from the Manage Subledger Accounting Options task.
  B. Journal entry spreadsheets are not impacted by this new function.
  C. Must have separate user defined roles using the privilege XLA_CREATE_GENERAL_LEDGER_AND_SUBLEDGER _JOURNALS.
  D. For previously scheduled automated processes, it is recommended to cancel and rescheduled the process for the option to be effective.
  A. Uncheck the Enable Posting from the Manage Subledger Accounting Options task.
  C. Must have separate user defined roles using the privilege XLA_CREATE_GENERAL_LEDGER_AND_SUBLEDGER _JOURNALS.

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  Explanation/Reference:

  According to Oracle documentation1, the following new features allow the segregation of duties of transferring journals to the General Ledger from the posting function: Uncheck the Enable Posting from the Manage Subledger Accounting Options task, and create separate user defined roles using the privilege XLA_CREATE_GENERAL_LEDGER_AND_SUBLEDGER_JOURNALS. Therefore, options A and C are correct. Option B is incorrect because journal entry spreadsheets are impacted by this new function. Users who create journals using spreadsheets must have the privilege XLA_CREATE_GENERAL_LEDGER_AND_SUBLEDGER_JOURNALS. Option D is incorrect because for previously scheduled automated processes, it is not recommended to cancel and reschedule the process for the option to be effective. The option will be effective for any new processes submitted after unchecking the Enable Posting option.

• Question 69:

  You are using account hierarchies for reporting and allocations. Which two statements are true about these types of hierarchies? (Choose two.)

  A. You can have only one version of a hierarchy published to the Essbase cube at any time.
  B. Hierarchies for reporting and allocations do not have to be published to Essbase cubes.
  C. Hierarchies for reporting and allocations have to be published to Essbase cubes.
  D. Child values in these hierarchies can belong to only one parent.
  A. You can have only one version of a hierarchy published to the Essbase cube at any time.
  D. Child values in these hierarchies can belong to only one parent.

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  Explanation/Reference:

  According to the Oracle documentation34, account hierarchies are defined in Oracle Fusion applications using tree functionality. Each account hierarchy is defined as a tree with one or more versions. You can have only one version of a hierarchy published to the Essbase cube at any time (option A). Child values in these hierarchies can belong to only one parent (option D). Option B is incorrect because hierarchies for reporting and allocations must be published to Essbase cubes5. Option C is incorrect because it contradicts option B.

• Question 70:

  Your customer has a large number of legal entities. The legal entity values are defined in the company segment which represents the primary balancing segment. They want to easily create eliminating entries for their intercompany activity. What would you recommend?

  A. Define an intercompany segment in the chart of accounts. The Intercompany module and the Intercompany balancing feature in general ledger and subledger accounting will automatically populate the intercompany segment which the balancing segment value of the legal entity with which you are trading
  B. There is no need to define an intercompany segment, the Intercompany module keeps track of the trading partners for you based on the intercompany rules to define
  C. Define an intercompany segment and qualify it as the second balancing segment to make sure all entries are balanced for the primary balancing segment and intercompany segment
  D. There is no need to define an intercompany segment. You can track the intercompany trading partner using distinct intercompany receivable/payable natural accounts to identify the trading partner
  A. Define an intercompany segment in the chart of accounts. The Intercompany module and the Intercompany balancing feature in general ledger and subledger accounting will automatically populate the intercompany segment which the balancing segment value of the legal entity with which you are trading

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  Explanation/Reference:

  According to Oracle documentation2, Oracle's recommended approach to easily create eliminating entries for intercompany activity when you have a large number of legal entities is to define an intercompany segment in the chart of accounts. The Intercompany module and the Intercompany balancing feature in general ledger and subledger accounting will automatically populate the intercompany segment with the balancing segment value of the legal entity with which you are trading. Therefore, option A is correct. Option B is incorrect because you do need to define an intercompany segment to easily create eliminating entries for intercompany activity. Option C is incorrect because you don't need to qualify the intercompany segment as the second balancing segment. You only need to qualify it as an intercompany segment. Option D is incorrect because you don't want to track the intercompany trading partner using distinct intercompany receivable/ payable natural accounts. You want to use a separate intercompany segment for that purpose.