Oracle Fusion Financials: General Ledger 2014 Essentials (1z1-408) Free Practice Test

Question 1

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. Never, because each period's revaluation adjustment is just for that period.

B. Both balance sheet and income statement revaluation journals should be reversed in the period.

C. Reverse them in the same period as the revaluation run.

D. The reversals must be done at the end of each quarter.

Correct Answer: B

Question 2

Your customer wants to prevent their department managers from viewing the results of other departments where they have no management authority.
What should be implemented for this type of security?

A. Role-Based Access

B. Cross-Validation Rules

C. Data Access Sets

D. Segment Value Security

Correct Answer: D

Question 3

When working with Essbase, versions of the tree hierarchy as defined in the Fusion not available in the Essbase balances cube.
What should you do to correct this situation?

A. Make sure the tree version was published successfully.

B. Redeploy the chart of accounts.

C. Make sure to flatten the rows of the tree version.

D. Make sure the tree is active.

Correct Answer: B

Question 4

Your customer is expanding its operations. You defined a new ledger and several business units. However, you are unable to assign the newly generated data roles to existing Accounts Payables and Accounts Receivables users in the shared service center.
What should you do to correct the problem?

A. Open Access Policy Manager (APM) and assign the roles manually

B. Open the Oracle Identity Management (OIM) and make sure the data roles were created.

C. Make sure you run the Retrieve Latest LDAP Changes program to regenerate the data roles.

D. Open the Manage Users page and make sure the employees at

Correct Answer: A

Question 5

You are defining intercompany balancing rules that are applied to a specific source and category, such as payables and invoices, or a specific intercompany transaction type, such as Intercompany Sales.
Which two statements are correct?

A. If you choose to have rules at various levels, then intercompany balancing evaluates the rules in this order: Ledger, Legal Entity, chart of accounts, and primary balancing segment value.

B. You can create a rule for all sources and categories by selecting the source "Other" and the category "Other."

C. You must define rules for every combination of specific categories and sources. Otherwise, theintercompany balancing will not work.

D. Set up a chart of accounts rule for every chart of accounts structure you have in order to ensurethat Intercompany Balancing will always find a rule to use to generate balancing accounts.

Correct Answer: A,C

Question 6

All of your subsidiaries can share the same ledger with their parent company and all reside on the same application instance. They do perform intercompany accounting.
What does Oracle consider the best practice approach to performing consolidations?

A. Use General Ledger's Financial Reporting functionality to produce consolidated reports bybalancing segment where each report represents a different subsidiary. Any eliminating entries can be entered in yet another separate balancing segment.

B. Use General Ledger's Balance Transfer programs to transfer subsidiary ledger balances to theparent ledger, and then enter eliminating entries as a separate balancing segment in the parent ledger.

C. Use Oracle Hyperion Financial Management for this type of complex consolidation.

D. Create separate ledgers for each subsidiary that shares the same chart of accounts, calendar,currency, and accounting method. Create a separate elimination ledger to enter intercompany eliminations. Then create a ledger set across all ledgers and report on the ledger set.

Correct Answer: C

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Question 7

You want to be notified of anomalies in certain account balances in real time. What is the rnost efficient way to do this?

A. Use Account Inspector.

B. Open a Smart View file saved on your desktop.

C. Create an Account Group using Account Monitor.

D. Perform an account analysis online.

Correct Answer: D

Question 8

What process must be followed to propagate a chart of accounts hierarchy to the Essbase cube?

A. Define the hierarchy, then deploy the chart of accounts. The chart of accounts hierarchies will be generated automatically.

B. Define the hierarchy, make sure the tree is active, and the Publish check box is selected for the hierarchy.

C. Define the hierarchy, make sure the tree version is active, and then run the publish account Hierarchies program or the Publish Chart of Accounts Dimension Members and Hierarchies

D. Define the hierarchy and make sure the tree is active. The hierarchy will be system generated for

Correct Answer: C

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Oracle Fusion Financials: General Ledger 2014 Essentials (1z1-408) Free Practice Test