1Z1-1054 by Oracle Valid Free Exam Practice Test

Question 1

All of your subsidiaries reside on the same application instance, but some of them require a different chart of accounts and/or accounting calendar and currency. There is no minority interest or partial ownerships. What is Oracle's recommended approach to performing consolidations?

A. Use Oracle Hyperion Financial Management for this type of complex consolidation. B. Translate balances to the corporate currency for ledgers not in the corporate currency, use General Ledger's Financial Reporting functionality to produce consolidated reports by balancing segment where each report represents a different subsidiary. C. Translate balances to the corporate currency, create a chart of accounts mapping to the corporate chart of accounts, then transfer balances to the corporate consolidation ledger using the balance transfer program 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 creates a ledger set across all ledgers and report on the ledger set.

Correct Answer: C

Question 2

You operate in a country whose unstable currency makes it unsuitable for managing your day-to-day business.
As a consequence, you need to manage your business in a more stable currency while retaining the ability to report in the unstable local currency. What would be your recommendation when defining ledgers?

A. Run Revaluation as often as you need to the more stable currency and report on the more stable currency's balances B. Create a secondary ledger that uses a different chart of accounts that is denominated in the more stable currency C. Use Journal-Level or Subledger-Level Reporting Currencies denominated in the more stable currency D. Run Revaluation to translate into Statistical Currency

Correct Answer: C

Question 3

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

A. Make sure the tree is active B. Make sure the tree version was published successfully C. Redeploy the chart of accounts D. Make sure to flatten the rows of the tree version

Correct Answer: B

Question 4

You create an invoice for USD 100 that is matched to a purchase order of USD 100. You validate the invoice to consume the budget and reduce funds available. And then later, you cancel the invoice. What happens to funds available when you cancel an invoice that requires budgetary control?

A. Funds available will change when the invoice is approved B. The funds reserved for the purchase order is reinstated while the invoice expenditure is reserved by USD
100 C. The budget will increase by USD 100 and the funds available will decrease by USD 100 D. The budget and funds available will increase by USD 100

Correct Answer: B

Question 5

Which feature outside of reporting and analysis leverages the Essbase cube?

A. calculation manager to perform allocations based on multidimensional balances and budgets B. journal entries and journal approval to create journals that update balances to the cube directly C. revaluations and translation to revalue and translate currencies stored in the Essbase cube D. period closing and opening of ledgers to keep General Ledger Cloud and the Essbase cubes in sync

Correct Answer: C

Question 6

You are setting up Close Monitor, which compromises a ledger set hierarchy definition.
Which two components of the enterprise structure should the ledgers in the ledger set share? (Choose two.)

A. Chart of Accounts and Business Units B. Chart of Accounts, Currency, Accounting Calendar, and Subledger Accounting Method C. Accounting Calendar D. Chart of Accounts E. Legal Entities, Business Units, and Chart of Accounts

Correct Answer: C,D

Question 7

Management wants to use the budget transfer function available on the Review Budgetary Control Balances page. Which privilege is required to perform the budget transfer?

A. Budget Loading (XCC_BUDGET_LOADING_DUTY_PRIV) B. Manage Control Budgets (XCC_MANAGE_CONTROL_BUDGETS_PRIV) C. Import Budget Amounts (XCC_IMPORT_BUDGET_PRIV) D. Import Budget Amounts from Spreadsheet
(XCC_IMPORT_BUDGET_FROM_SPREADSHEETS_PRIV)

Correct Answer: C

Question 8

Your customer has a large number of legal entities. The legal entity values are defined in the company segment which represents the primary balancing segment. They want to easily create eliminating entries for their intercompany activity. What would you recommend?

A. There is no need to define an intercompany segment. You can track the intercompany trading partner using distinct intercompany receivable/payable natural accounts to identify the trading partner B. There is no need to define an intercompany segment, the Intercompany module keeps track of the trading partners for you based on the intercompany rules to define C. Define an intercompany segment in the chart of accounts. The Intercompany module and the Intercompany balancing feature in general ledger and subledger accounting will automatically populate the intercompany segment which the balancing segment value of the legal entity with which you are trading D. Define an intercompany segment and qualify it as the second balancing segment to make sure all entries are balanced for the primary balancing segment and intercompany segment

Correct Answer: C

Oracle Financials Cloud: General Ledger 2019 Implementation Essentials - 1Z1-1054 Exam Practice Test