Oracle R12 GL/AP Certification FAQs

1). Identify two true statements about using column sets in an FSG report. (Choose two.)

A. Formats can be set for each column.
B. Accounts cannot be assigned to a column set.
C. Calculations can be performed by using columns.
D. The seeded column sets provided must be used.
Answer: AC





2). Which report would provide information about the processing type (parallel or sequential) that may be
defined for reports?

A. FSG Report Detail Listing
B. FSG Report Summary Listing
C. FSG Row Set Summary Listing
D. FSG Content Set Summary Listing
Answer: D

3). During a pilot run of Financial Statement Generator reports, the report output displayed credit amounts
as negative numbers. The customer requires the credit amounts on the reports to be positive instead of
negative.
Identify the solution that must be implemented to meet the customer's requirements.

A. Inform the customer that this requirement would require a customization.
B. Select the change sign check box for the related row or column definition.
C. Deselect the change sign check box for the related row or column definition.
D. Create a journal by doubling the values wherever the report is displaying negative numbers.
Answer: B

4). You have been hired to implement Oracle General Ledger at XYZ Company. They want to have four
legal entities to support operations in the US (East), the US (West), the UK, and France.
The chart of accounts and accounting calendar are similar for all entities except France. Only the UK
operations want to enable average balances and journal approvals.
What would be the minimum number of setups needed to meet this need?
A. four
B. two
C. one
D. three
Answer: D

5). Choose the maximum number of secondary ledgers that can be assigned to a primary ledger.

A. unlimited
B. two per primary ledger
C. one per primary ledger
D. one per primary ledger with a reporting currency
Answer: A

6). John has created two ledgers: one primary and one secondary. The primary ledger stores
transactional data and the secondary ledger stores only adjustments. The secondary ledger shares the
same chart of accounts, accounting calendar or period-type combination, and currency as the associated
primary ledger.
John wants to obtain a complete accounting representation that includes both transactional data and
adjustments while running reports. Identify the best option.

A. Merge the primary ledger and the secondary ledger, and run reports.
B. Transfer adjustment data from the secondary ledger to the primary ledger while running reports.
C. Transfer transactional data from the primary ledger to the secondary ledger while running reports.
D. Use ledger sets to combine the adjustments-only secondary ledger with the primary ledger when
running reports.
Answer: D

7). 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 subledger-level reporting currency.
C. Create a journal-level reporting currency for every transaction.
D. Create a balance-level reporting currency and run general ledger translation.
Answer: B

8). ABC Enterprise has operations in the US, France, and Italy. The US, France, and Italy operations
have separate legal and statutory requirements. The tax requirements also differ for each country.
Identify the action you would perform to set up Oracle General Ledger.

A. Create a separate legal entity and accounting setup for each operation.
B. Create one legal entity and three accounting setups for the US, France, and Italy.
C. Create three legal entities for the US, France, and Italy, and one accounting setup.
D. Create three legal entities for each operation. Create one accounting setup for France and Italy, and
one for the US.
E. Create two legal entities: one for France and Italy, and one for the US. Create two accounting setups:
one for France and Italy, and one for the US.
Answer: A

9). XYZ Company is implementing Oracle at its headquarters in the US. It has operations in Australia, the
UK, and China. The Australian and the US operations can share the same chart of accounts segments,
and the UK and China operations can share the same chart of accounts segments.
All operations share the same calendar or period-type combination, but not the currency. Each country
requires that a separate accounting data be maintained.
Identify the number of legal entities to be created and the number of accounting setups.

A. Create one legal entity and four accounting setups.
B. Create four legal entities and one accounting setup.
C. Create two legal entities and four accounting setups.
D. Create four legal entities and four accounting setups.
Answer: D

10). ABC Enterprises has operations in the UK, France, the US (West), and the US (East). The US (West)
has budgetary control enabled and the US (East) requires approvals for journals. All operations share
the same chart of accounts, accounting calendar, and subledger accounting method. The US (West)
and the US (East) operate on the USD currency. The UK's currency is GBP, whereas France operates
on the EUR currency.
Identify the least number of legal entities and accounting setups to be created.

A. 1 legal entity and 4 accounting setups
B. 4 legal entities and 1 accounting setup
C. 3 legal entities and 3 accounting setups
D. 4 legal entities and 4 accounting setups

Answer: D

11). Select three criteria that are required to assign multiple legal entities to the same accounting setup.
(Choose three.)

A. have similar ledger processing options
B. open and close periods simultaneously
C. have tax requirements that are specific for a legal entity
D. require autonomous document sequencing for a legal entity
E. operate in a country that allows multiple legal entities to share the same primary ledger and ledger
attributes

Answer: ABE

12). The accounting setup process in Oracle General Ledger consists of three main steps. (Choose three.)
A. Update accounting options.
B. Approve accounting options.
C. Complete the accounting setup.
D. Create an accounting setup structure.
Answer: ACD

13). Select two statements that are true about ledgers in Oracle General Ledger. (Choose two.)
A. Each accounting setup requires a primary ledger.
B. Each accounting setup requires a primary ledger and a reporting ledger.
C. Each accounting setup requires a primary ledger and an adjustment-only secondary ledger.
D. Each accounting setup optionally requires one or more secondary ledgers and reporting currencies.

Answer: AD

14). You are implementing Oracle General Ledger at ABC Enterprises. ABC Enterprises is a legal entity
and must perform corporate and statutory reporting. It operates in a country that requires companies to
have two complete ledgers: one for statutory reporting and another for corporate reporting.
Identify the best option for primary and secondary ledgers.

A. Use the primary ledger to satisfy corporate reporting requirements, and then use a secondary ledger to
satisfy statutory reporting requirements.
B. Use the primary ledger to satisfy statutory reporting requirements, and then use a secondary ledger to
satisfy corporate reporting requirements.
C. Use the primary ledger to satisfy corporate reporting requirements, and then use an adjustment-only
secondary ledger to satisfy statutory reporting requirements.
D. Use the primary ledger to satisfy statutory reporting requirements, and then use an adjustment-only
secondary ledger to satisfy corporate reporting requirements.

Answer: A

15). Select two valid statements that apply to chart of accounts structures for a global company. (Choose
two.)
A. A segment of different chart of accounts structures can share the same value set.
B. A global chart of accounts is possible only if all sets of books for companies worldwide use the same
chart of accounts structure.
C. If the same value set is used for two or more chart of accounts structures, the same security rules for
that segment cannot be assigned to multiple structures.
D. It is possible to have multiple companies in the same set of books provided that they share the same
chart of accounts structure, accounting calendar, and reporting currency.

Answer: AB

16) You have been asked to demonstrate the basic functionality of Oracle General Ledger with a ledger
that reflects XYZ Company's business.
Select four data elements that you would need to obtain from XYZ Company to create a ledger for your
demo. (Choose four.)

A. the suspense account
B. the intercompany account
C. the retained earnings account
D. the number of accounting periods
E. the base (functional) currency of the company
F. the accounting calendar with periods and the fiscal year-end
G. the company organization structure for the chart of accounts

Answer: CEFG

17). ABC Inc. wants to have 16 accounting periods that include an adjusting period for each quarter in its
4-5-4 accounting calendar. Its fiscal year-end is March 31.
The normal month-end is on a Friday, but the last day of each quarter is always on the last day of the
quarter's final calendar month.
Select the remaining setup for the calendar to meet the requirement.

A. defining 12-monthly periods based on the 4-5-4 calendar ending on the last day of each month;
defining an adjusting period on the last day of each quarter
B. defining 12-monthly periods based on the 4-5-4 calendar ending on the last Friday of each month;
defining four adjusting periods for March 31 of the fiscal year
C. defining 12-monthly periods based on the 4-5-4 calendar ending on the last Friday of each month;
defining an adjusting period on the last Friday of each quarter
D. defining 12-monthly periods based on the 4-5-4 calendar ending on the last Friday of each month,
except for the last month of each quarter ending on the last day of the month; defining an adjusting period
for each of the last day of the quarter
Answer: D

18). Your client wants to report with Financial Statements Generator (FSG) and perform account inquiry at
the summary (business unit) level of the cost center segment. A business unit is a group of cost centers,
and a business unit manager typically has several cost centers under his or her responsibility.
Which option will meet the client's requirements?

A. defining parent cost centers and a hierarchy of parent/child cost centers; defining rollup groups for the
parent cost centers; creating FSG based on the rollup groups
B. defining parent cost centers and a hierarchy of parent/child cost centers; creating summary accounts
based on the parent cost centers; creating FSG based on the parent cost center values
C. defining parent cost centers and a hierarchy of parent/child cost centers; defining summary accounts
for the parent cost centers; creating FSG based on the parent cost center values or summary accounts

D. defining parent cost centers and a hierarchy of parent/child cost centers; defining rollup groups for the
parent cost centers, and summary accounts; creating FSG based on the parent cost center values or
summary accounts

Answer: D

19). XYZ Company is implementing Oracle General Ledger. They want to record and report on expenses
by cost center. Identify three segments that must be defined for XYZ Company's accounting flexfield.
(Choose three.)

A. project
B. account
C. balancing
D. cost center
E. intercompany
Answer: BCD

20). Identify three ways in which subledgers transfer information to General Ledger. (Choose three.)
A. balances
B. batch transfer
C. detail journals
D. line-level records
E. summary journals

Answer: BCE

21). ABC Corp. runs the Create Journals program, after which the Create Journal Entries Execution report
is automatically created.
Identify three components on which the Create Journal Entries Execution report reports. (Choose three.)

A. Budget Journals
B. Posted Journals report
C. Payables encumbrance entries
D. Purchasing encumbrance entries

Answer: ACD

22). You set the GL: Journal Review Required profile option to "Yes." Identify the result.
A. requires all journals to be reviewed before posting
B. requires review of recurring journals before posting
C. requires review of a journal entered in GL by the approver before posting
D. requires generated AutoAllocation journals to be reviewed before posting

Answer: D

23). For each subledger, there must be one _____.
A. journal type
B. account type
C. journal source
D. journal category

Answer: C

24). Company A wants to distribute the rent expense to its various departments on the basis of floor space.
It has taken these steps:
1) capturing the floor space that is used by each department in a statistical account
2) creating a journal entry for the rent
Identify the next two steps required to distribute the rent cost to the various departments. (Choose two.)
A. posting the journal
B. defining the MassAllocation journal
C. defining and generating MassAllocation
D. creating manual journal entries for distributing the rent

Answer: AC

25). A reversing journal entry can be posted into _____.
A. a current or any future open period
B. a past closed period and a current open period
C. a current open period and a never-opened period

Answer: A

26). The GL user entered a taxable journal and posted it. Later, the user realized that the tax code
entered was wrong.
What must the user do?

A. Delete the journal and reenter it.
B. Reverse and reenter the journal.
C. Unpost the journal and reenter it.
D. Modify the tax code at the line level.
E. Enter another journal with the difference in the tax amount.

Answer: B

27). The fiscal year of XYZ Inc. is the calendar year.
Before closing the Mar-05 period, a GL user notices that an entry related to the Dec-04 period has not
been entered. Dec-04 has a closed status.
Now that the user has all the approvals, he or she wants to know how to enter and post the journal in GL,
ensuring that all balances are reflected correctly.
What must the user do?

A. Open Dec-04; enter and post the journal; close the period.
B. Open Dec-04, Jan-05, and Feb-05; enter and post the journal; close all periods.
C. Open Dec-04; enter and post the journal; run the Trial Balance report; close the period.
D. The user cannot post to a prior period that is not in the current fiscal year. So, enter and post it in
Mar-05.

Answer: C

28). ABC Inc.'s calendar is the fiscal year. They also use Average Balance Processing.
ABC's accrual category is defined with AutoReversal, with the reversal period as the next day, and an
effective date rule of roll.
An accrual journal entered on 29-Apr-05 will be reversed on the _____.

A. first day of the next period
B. next day in the same period
C. next business day in the same period
D. next business day in the same period or the next period, based on the transaction calendar

Answer: D

29). Which journal entry type does General Ledger automatically reverse and post?
A. actuals
B. budgets
C. actuals and budgets
D. budgets and encumbrance
E. actuals, budgets, and encumbrance

Answer: A

30). Identify three benefits of using the Journals Import: Group By Effective Date profile option. (Choose
three.)

A. facilitates consolidation
B. makes daily updates to daily business intelligence
C. facilitates more transparent exchange rate conversions
D. accounts for business transactions by effective date or by accounting date
E. facilitates financial auditing and compliance with the new Sabanes-Oxley Act

Answer: BDE

31). Select two components that are required to create the accounting setup by using Accounting Setup
Manager. (Choose two.)

A. ledgers
B. operating units
C. data access sets
D. definition access sets
E. subledger accounting method

Answer: AE

32). Choose three required steps while performing the accounting setup in the Accounting Setup Manager.
(Choose three.)

A. Define operating units.
B. Update accounting options.
C. Complete the accounting setup.
D. Define intercompany balancing rules.
E. Create the accounting setup structure.
F. Assign balancing segment values to legal entities.

Answer: BCE

33). Identify two places where you can define a legal entity. (Choose two.)
A. set of books
B. data access set
C. Legal Entity Configurator
D. HRMS organization setup
E. Accounting Setup Manager

Answer: CE