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Oracle Financials Cloud: General Ledger 2021 Implementation Essentials Sample Questions:

1. You are reconciling your subledger balances and you need a report that includes beginning and ending account balances and all transactions that constitute the account's activities. What type of report will provide this type of information?

A) Journal Reports
B) Account Analysis Report
C) Aging Reports
D) an Online Transactional Business Intelligence (OTBI) report to create ad hoc queries on transactions and balances

2. Budgetary control for account 5020 and 5021 has a budget of $90,000USD each for the year 2012. The accounts also have balances on obligation of $10,000 USD for each and an expenditure of $20,000 USD for each. A Fund of $50,000 USD is available for account 5010 only. You have run the Encumbrance Year End Carry Forward process for obligation from the last period of the year 2012 to the first period of year2013. Which statement is true?

A) If you have included 5020 and 5021 in the encumbrance rule, then budget balances $90,000 USD, obligation $10,000 USD, and expenditure $20,000 USD, and the funds available $50,000 USD will be carried forward
B) If you have included 5020 and 5021 in the encumbrance rule, then only the obligation of $10,000 USD will be carried forward
C) The Encumbrance Year End Carry Forward process will run for all the accounts to carry forward the general ledger balances
D) If you have included 5020 and 5021 in the encumbrance rule, then obligation $10,000 USD and expenditure $20,000 USD only will be carried forward.
E) If you have included 5020 and 5021 in the encumbrance rule, the budget balances $90,000 USD, obligation $10,000 USD and expenditure $20,000 USD only will be carried forward.

3. Your Customer has three legal entities, 50 Departments, and 10,000 natural accounts. They use intercompany entries. What is Oracle's recommended best practice when implementing: a new chart of accounts? How many segments and what segment qualifiers should be used?

A) Define five segments for the company, department, natural account, intercompany segment and future segment. The qualifiers should be primary balancing segment , cost center segment, natural account segment, intercompany segment an no qualifier respectively.
B) Define four segments for the company, department, natural account and intercompany segment. The qualifiers should be primary balancing segment , cost center segment, natural account segment and intercompany segment respectively
C) Define Three segments for the company, department, and natural accounts. The qualifiers should be primary balancing segment, intercompany segment, cost center segment, and natural account segment, respectively
D) Define Three segments for the company, department, and natural accounts, the qualifiers should be primary balancing segment, cost center segment, and natural account segment, respectively

4. There is a business requirement for a subsidiary company to report to the parent company basis.
Given that:
The subsidiary is in another country from the parent.
There is no requirement to have daily balances.
The objective is to minimize the data stored in the reporting currency.
Which data conversion level should you recommend?

A) Adjustment only level
B) Journal Level
C) Balances Level
D) Spreadsheet level
E) Subledger level

5. Your foreign currency transactions need to be revalued every month. For balance sheet accounts, you reverse the revaluation journals in the next period. You are using the period- to-date (PTD) method of revaluation tor your income statement accounts. When should you reverse revaluation journals, if at all required

A) Both balance sheet and income statement revaluation journals should be reversed in the period
B) Reverse them in the same period as the revaluation run
C) Never, because each period's revaluation adjustment is just for that period
D) The reversals must be done at the end of each quarter

Solutions: