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Oracle EBS R12: General Ledger and Receivables Fundamentals Sample Questions:

1. ABC Enterprise has operations in the US and its headquarters in the UK. They share the same chart of accounts, accounting calendar, accounting method, and ledger-processing options. UK management requires reporting on receivables from its US operations in GBP each month. Identify the best option for the US operations to report to their parent.

A) Create an account-level reporting currency.
B) Create a balance-level reporting currency and run general ledger translation.
C) Create a journal-level reporting currency for every transaction.
D) Create asubledger-level reporting currency.

2. ABC Company in India imports baking equipment from XYZ Company in the US A.
There is an outstanding invoice of $1,000,000 to be paid in two months. The USD-to-INR rate when the transaction was done was 47.5. Now the USD-to-INR rate has changed from 47.5 to 40.5. Jack, who is a treasury analyst at ABC Company, reviews the transactions and comes to a conclusion. Select two correct conclusions arrived upon by Jack. (Choose two.)

A) XYZ Company has a positive impact by this rate change.
B) ABC Company is not impacted at all by this rate change.
C) XYZ Company is not impacted at all by this rate change.
D) ABC Company has a positive impact by this rate change.

3. Your client occasionally charges sales tax erroneously to some customers. The client's current process involves manually issuing a credit memo to correct the customer's account. Customers routinely deduct the sales tax from the invoice before paying. Identify two steps that can help simplify the clients current process. (Choose two.)

A) Set upAutoAccounting.
B) Set up transaction type for tax adjustment.
C) Define receivables activity of adjustment with tax accounting distribution.
D) Set up adjustment approval limits.
E) Define receivables activity of miscellaneous cash with tax accounting distribution.
F) Select the TAX: Allow Override of Tax Code profile option.

4. You are implementing Oracle General Ledger (GL) at a client site. The client is based in the US, but they have a presence in many countries and transactions in multiple currencies. The implementation team decides that the GL multi-currency setup will be a part of the implementation. John, a junior consultant helping you in the implementation effort, tells you that he is testing the system and entering journals in USD, Yen, and Euros. He says that he is able to enter journals in USD and Euros, but not in Japanese Yen. What possible explanation can you provide to John for this?

A) Rate types have not been defined for Yen.
B) Daily rates have not been entered for Yen.
C) Workflow must be customized for journals to be entered in Yen.
D) Yen has not been enabled.

5. Choose the correct sequence of the budget accounting cycle in Oracle applications.
A) Freeze budgets.
B) Define budgets and budget organization.
C) Review and correct budgets.
D) Report on budgets.
E) Enter budget amounts.

A) A, B, C, D, E
B) B, E, C, A, D
C) E, D, C, B, A
D) E, A, B, C, D
E) B, E, C, D, A

Solutions: