Oracle Oracle Certifications 1Z0-1059-20 Questions & Answers

• Question 51:

  When is it required to populate the number of periods and percentage of revenue (seen in the image below) while defining a revenue scheduling rule?

  

  A. when the Deferred Revenue box is checked

  B. when it is a business requirement

  C. when Context Values are populated

  D. when the Type is Fixed or Variable

  Correct Answer: D

  Reference: https://fusionhelp.oracle.com/fscmUI/topic/TopicId_P_888B257D55BE0BBDE040D30A688 13B17

• Question 52:

  Which is NOT a required piece of information when importing contract header Information from a source file?

  A. Date of Source Document

  B. Source Document Type code

  C. Record Type

  D. Source System

  E. Currency code of source document

  F. Source Document Unique Identifier Number 1

  Correct Answer: F

  Reference: https://docs.oracle.com/cloud/r13_update17b/financialscs_gs/FAFRM/FAFRM2340000.htm #FAFRM2340000

• Question 53:

  What does a Variable Consideration require?

  A. an estimate of the consideration be made at inception only

  B. that the consideration be monetary

  C. an estimate of the consideration be made at Inception, and corrections of the accrual at made at each period end until revenue Is recognized

  D. a disclosure be made to the shareholders

  Correct Answer: A

  Explanation: https://cloud.oracle.com/opc/saas/RevMgmt/r12/wn/r12-revenue-wn.pdf (p.15)

• Question 54:

  If the Contract Identification Rules that you defined for your customer did not group the source data into customer as expected, how would you resolve the issue?

  A. Delete the source data that was imported into Revenue Management and import new source data.

  B. Delete the performance obligations from the relevant contracts through the Manage Customer Contracts Ul.

  C. Run the Discard Customer Contracts program for the relevant contracts, define a new, higher-priority Contract Identification Rule, and run The Identify Customer Contracts program again.

  D. Delete Contracts from the Manage Customer Contracts Ul.

  E. Run the Discard Customer Contracts program for the relevant contracts and run the Identify Customer contracts program again.

  Correct Answer: C

• Question 55:

  A business entity (your client) sells a computer, monitor, keyboard, and mouse as a single package to consumers. The entity has identified that this bundle is a distinct performance obligation. How should you configure

  Revenue management to ensure that these items are grouped into one performance obligation?

  A. By defining a Revenue Item Group

  B. By defining a Standalone Selling Price Profile.

  C. By defining a Performance Obligation Template.

  D. By defining a Contact Identification Rule.

  Correct Answer: A

• Question 56:

  After analyzing sales documents for your organization, you conclude that it will be appropriate to group transaction lines by customer to create contracts In Revenue Management.

  Which predefined Contract Identification Rule can be used in this case?

  A. Identify Customer Contract Based on Party

  B. Identify Customer Contract Based on Source Document Line

  C. Identify Customer Contract Based on Source Document

  D. Identify Customer Contract Based on Source System

  Correct Answer: C

  Reference: https://docs.oracle.com/cloud/farel12/financialscs_gs/FAIRP/FAIRP2288193.htm#FAIRP24 33444

• Question 57:

  Your customer ships machines, and can recognize revenue for each machine after the machine has been delivered to a customer without waiting for complete satisfaction of an entire performance obligation. How would you configure Satisfaction Method (SM) and Satisfaction Measurement Model (SMM) in Revenue Management to recognize revenue for these performance obligations at a point in time?

  A. by setting SM to "Allow Partial" and SMM to "Quantity"

  B. by setting SM to "Requires Complete" and SMM to "Period"

  C. by setting SM to "Requires Complete" and SMM to "Quantity"

  D. by setting SM to "Requires Complete" and SMM to "Percent"

  E. by setting SM to "Allow Partial" and SMM to "Period"

  Correct Answer: B

• Question 58:

  Which statement does NOT describe how revenue is handled under the latest standards under ASC 606 and IFRS 15?

  A. You accrue for goods and services that you owe to customers because either you or they have relied on the contract. You no longer defer revenue.

  B. You value the accrual at estimated consideration and it is a monetary debt.

  C. You book the invoiced amount to the PandL when you meet the regulatory definition by Industry.

  D. You calculate the liability at inception and book it when either party acts. An Act could be shipping or invoicing.

  E. Liability is a list of goods and services you actually owe to the customers for future satisfaction via transfer.

  Correct Answer: A

• Question 59:

  Revenue Management creates journal entries from a contract In order to recognize revenue properly. Which three event types are used by Revenue Management to create these journal entries?

  A. Performance Obligation Satisfied

  B. Performance Obligation Billed

  C. Initial Performance

  D. Revenue Recognized

  E. Standalone Selling Prices Allocated

  Correct Answer: ACD

• Question 60:

  You have defined 3 Contract Identification rules: Rule A, Rule B, and Rule C. You then decide that Rule C needs to be the first rule executed when the "Identify Customer Contracts" process runs.

  Which attribute needs to be updated to achieve this objective?

  A. Freeze Period

  B. Default Classification

  C. Source Document Type

  D. Priority

  Correct Answer: D