Oracle 1Z0-1107-2 Online Practice Questions and Exam Preparation

Oracle 1Z0-1107-2 Online Questions & Answers

• Question 31:

  Ganesh works for Glenn Systems as a General Accountant and he has a requirement to create periodic allocations at the end of the month to distribute welfare expenses. The allocations will be based on headcounts in each department. In which currency should the journal entry be created to load the headcounts? (Choose the best Answer.)

  A. Statistical Currency
  B. Reporting Currency
  C. Foreign Currency
  D. Ledger Currency
  A. Statistical Currency

  ---

  Explanation

  Statistical Currency is the currency that you should use to create the journal entry to load the headcounts. Statistical Currency is a special currency that is used to record non-monetary values, such as headcounts, units, or hours. You can use Statistical Currency to create allocation journals based on non-monetary bases or drivers1.

  References: Oracle Financials Business Process Certified Foundations Associate Rel 1

• Question 32:

  Your organization has hired Steven Johns who will be responsible for analyzing the financial performance and providing feedback for better decision making. Which job role will help Steven Johns to perform his job in the organization? (Choose the best Answer.)

  A. General Accounting Manager
  B. Cash Manager
  C. Financial Analyst
  D. General Accountant
  C. Financial Analyst

  ---

  Explanation

  Financial Analyst is the job role that will help Steven Johns to perform his job in the organization. Financial Analyst is responsible for analyzing the financial performance and providing feedback for better decision making. Financial Analyst can use various reporting tools, such as Financial Reporting Web Studio, Smart View, Account Inspector, and Account Monitor, to create and view financial reports, dashboards, charts, and graphs. Financial Analyst can also perform variance analysis, trend analysis, what-if analysis, and drill down to transaction details2.

  References: Oracle Financials Business Process Certified Foundations Associate Rel 1

• Question 33:

  John works as a Cash Manager in Glenn Systems and he wants to create the Cash Positioning report by using the predefined system transactions as sources. Identify three predefined sources that John can choose to create this report.? (Choose three.)

  A. Purchase Requisitions
  B. AR Invoices
  C. AP Invoices
  D. Purchase Orders
  E. AP Payments
  B. AR Invoices
  C. AP Invoices
  E. AP Payments

  ---

  Explanation

  These are three predefined sources that you can choose to create the Cash Positioning report by using the system transactions. The Cash Positioning report is a report that shows your cash inflows and outflows for a given period and bank account. You can use various sources to populate the report with system transactions, such as AR Invoices, AP Invoices, AP Payments, AR Receipts, GL Journals, or Cash Forecasting1.

  References: Oracle Financials Business Process Certified Foundations Associate Rel 1

• Question 34:

  Glenn Systems owns a luxury car and they want to restrict the amount of depreciation that should be charged to this asset in a particular period. Which two types of depreciation ceiling can they use to achieve this? (Choose two.)

  A. Depreciation Rate Ceiling
  B. Depreciation Cost Ceiling
  C. Depreciation Expense Ceiling
  D. Depreciation Period Ceiling
  B. Depreciation Cost Ceiling
  C. Depreciation Expense Ceiling

  ---

  Explanation

  These are two types of depreciation ceiling that you can use to restrict the amount of depreciation that should be charged to your luxury car in a particular period. Depreciation Cost Ceiling is a limit on the total depreciation amount that can be charged over the life of an asset. Depreciation Expense Ceiling is a limit on the depreciation amount that can be charged in a single period for an asset1.

  References: Oracle Financials Business Process Certified Foundations Associate Rel 1

• Question 35:

  Your organization has decided to use specific business days for which the transactions should be considered in the cash positioning report. Which calendar would you assign to achieve this requirement on the Specify Cash Positioning and Forecast Options page? (Choose the best Answer.)

  A. Default Accounting Calendar
  B. Default Source Calendar
  C. Default Prorate Calendar
  D. Default Transaction Calendar
  D. Default Transaction Calendar

  ---

  Explanation

  Default Transaction Calendar is the calendar that you would assign to achieve the requirement of using specific business days for which the transactions should be considered in the cash positioning report. The Specify Cash Positioning and Forecast Options page is a page where you can define the options and preferences for generating and viewing the cash positioning report. You can assign a default transaction calendar to specify the business days that are used to filter and group transactions in the report. The default transaction calendar can be different from the accounting calendar or the source calendar1.

  References: Oracle Financials Business Process Certified Foundations Associate Rel 1

• Question 36:

  Which accounting engine is used to define the rules that help in generating the accounting entries for transactions such as supplier invoices and payments or customer invoices and receipts? (Choose the best Answer.)

  A. Essbase Cube
  B. Subledger Accounting (SLA)
  C. General Ledger
  D. Business Intelligence
  B. Subledger Accounting (SLA)

  ---

  Explanation

  Subledger Accounting (SLA) is the accounting engine that is used to define the rules that help in generating the accounting entries for transactions such as supplier invoices and payments or customer invoices and receipts. SLA provides a common platform for all subledger applications to create accounting entries based on user-defined rules and mappings. SLA also provides tools for reporting, inquiry, and analysis of subledger journal entries1.

  References: Oracle Financials Business Process Certified Foundations Associate Rel 1

• Question 37:

  Your organization has decided to use the Balance Forward Billing feature to consolidate multiple invoices into a single bill and you have been asked to configure this feature. What is the recommended order of steps that needs to be followed to complete your configuration? (Choose the best Answer.)

  A. Define BFB Payment Terms > Attach BFB Payment Terms to Customer > Enable BFB in the Customer Profile > Define BFB Billing Cycle
  B. Define BFB Payment Terms > Define BFB Billing Cycle > Enable BFB in the Customer Profile > Attach BFB Payment Terms to Customer
  C. Enable BFB in the Customer Profile > Define BFB Payment Terms > Define BFB Billing Cycle > Attach BFB Payment Terms to Customer
  D. Define BFB Billing Cycle > Define BFB Payment Terms > Enable BFB in the Customer Profile > Attach BFB Payment Terms to Customer
  D. Define BFB Billing Cycle > Define BFB Payment Terms > Enable BFB in the Customer Profile > Attach BFB Payment Terms to Customer

  ---

  Explanation

  This is the recommended order of steps that needs to be followed to complete your configuration of the Balance Forward Billing feature. Balance Forward Billing is a feature that enables you to consolidate multiple invoices into a single bill and send it to your customers at regular intervals, such as monthly or quarterly. To configure Balance Forward Billing, you need to perform the following steps1: Define BFB Billing Cycle: This step involves creating a billing cycle name, description, and frequency for generating balance forward bills. Define BFB Payment Terms: This step involves creating payment terms that specify the due date and discount date for balance forward bills. Enable BFB in the Customer Profile: This step involves enabling the Balance Forward Billing option in the customer profile class or customer account level. Attach BFB Payment Terms to Customer: This step involves assigning the balance forward payment terms to the customer account or site level.

  References: Oracle Financials Business Process Certified Foundations Associate Rel 1

• Question 38:

  Which three preferred delivery methods can you choose to send statements to your customers while defining customer profile classes? (Choose three.)

  A. Fax
  B. Print
  C. Email
  D. WhatsApp
  E. SMS
  A. Fax
  B. Print
  C. Email

  ---

  Explanation

  These are three preferred delivery methods that you can choose to send statements to your customers while defining customer profile classes. A customer profile class is a grouping of customers that share common attributes, such as credit limits, payment terms, or statement cycles. You can define the preferred delivery method for each customer profile class to specify how you want to send statements to your customers. The available delivery methods are fax, print, email, or none1.

  References: Oracle Financials Business Process Certified Foundations Associate Rel 1

• Question 39:

  Glenn Systems has decided to create accounting for payments at the time of issuing, as well as at the time of clearing the payments. Which accounting entry will be generated by the sys-tem when the payment gets reconciled with a bank statement line? (Choose the best Answer.)

  A. Debit -AP Liability Credit-Cash Clearing Account
  B. Debit-AP Liability Credit-Cash Account
  C. Debit-Expense Credit-Cash Account
  D. Debit Cash Clearing Account Credit-Cash Account
  D. Debit Cash Clearing Account Credit-Cash Account

  ---

  Explanation

  This is the correct accounting entry for reconciling a payment with a bank statement line when the payment is accounted at both issuing and clearing time. The cash clearing account is debited to reduce the balance of the payment that was issued, and the cash account is credited to increase the balance of the cash that was cleared1.

  References: Oracle Financials Business Process Certified Foundations Associate Rel 1

• Question 40:

  Which tool do you use to preview the workings of your tax configuration before you per- form tax calculations on live transactions in a subledger application? (Choose the best Answer.)

  A. Tax Manager
  B. Tax Estimator
  C. Tax Tester
  D. Tax Simulator
  D. Tax Simulator

  ---

  Explanation

  Tax Simulator is the tool that you use to preview the workings of your tax configuration before you perform tax calculations on live transactions in a subledger application. Tax Simulator allows you to enter transaction details and view the expected tax results based on your tax setup. You can also compare different tax scenarios and review the tax determination factors and rules that are applied2.

  References: Oracle Financials Business Process Certified Foundations Associate Rel 1