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1Z0-1054-20: Oracle Financials Cloud:

General Ledger 2020
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Practice Test 2 - Results

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Question 1: Correct

You want to prevent intercompany transactions from being entered during the last day of the close.
What should you do?

Freeze the Intercompany journal source in General Ledger

Close all subledger periods

 Close the General Ledger period in the Manager Accounting Periods page

Close Intercompany periods in Fusion Intercompany

(Correct)

Question 2: Incorrect

Your company has complex consolidation requirements with multiple general ledger instances. You
are using Oracle Hyperion Financial Management to consolidate the disparate General Ledgers. You
can typically map segments between your general ledger segment to a Hyperion Financial
Management segment, such as

Larger image

Company to Entity, Department to Department, and Account to Account. What happens to

segments in your source general ledger, such as Program, that cannot be mapped to Hyperion
Financial Management?

Data is summarized across segments that are not mapped to Hyperion Financial Management

(Correct)

The unmapped segments default to future use segments in Hyperion Financial Management

(Incorrect)

No data is transferred

Errors occur for unmapped segments. You must map multiple segments from source general
ledgers to the target segment in Hyperion Financial Management

Question 3: Correct

You are creating financial statements and want to have charts, such as a bar graph, automatically
inserted to improve the understanding financial results. How would you achieve this?

Use Smart View, which is an Excel Add-on

Use Account Inspector that automatically creates graphs on financial balances

 When viewing the report, download to Excel and use Excel’s Charting features to create your
bar graph

When designing your financial statement using Financial Report (FR), embed a chart into your
report

(Correct)

Question 4: Incorrect

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?

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

(Correct)

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

(Incorrect)

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

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

Question 5: Incorrect

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

Create an Account Group using Account Monitor

(Correct)
 Use Account Inspector

Open a Smart View file saved on your desktop

Perform an account analysis online

(Incorrect)

Question 6: Skipped

Journal Description Rules are assigned to Subledger Journal Entry Rule Sets.

What are the other three subcomponents of a Subledger Journal Entry Rule Set? (Choose three.)

Accounting Date

Chart of Accounts

Journal Line Rules

(Correct)

Account Rules

(Correct)

Supporting References

(Correct)

Question 7: Correct

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?

Make sure to flatten the rows of the tree version

Make sure the tree is active

Make sure the tree version was published successfully

 (Correct)

Redeploy the chart of accounts

Question 8: Incorrect

Larger image

You need to create a month-end reporting package for an upcoming Audit Committee meeting, you
have 10 financial reports that you want to share with executives and auditors that are nicely
formatted.

Identify the two Oracle recommended ways to accomplish this. (Choose two.)

Use BI Publisher to configure the reports and then use bursting to email the reports to the
executives and Audit Committee

Use a report batch to run reports at a specific time to create a set of snapshot reports

(Correct)

Using Workspace, assemble multiple reports into a book that can be printed and viewed
individually as an entire book

(Correct)

Create a Smartview report, where the various sheets represent the different Financial
Statements and send them the spreadsheet

Use OTBI to create multiple reports that you save to a folder that only the users can access

Question 9: Incorrect

Which two methods can your General Ledger accountants use to more easily view large amounts
of data contained in the tables in their work areas? (Choose two.)

Use the Freeze feature on the tables to scroll through large amounts of data

Run a Business Intelligence Publisher report with Excel as the output format
 Export the table to Excel

(Correct)

Detach the table to resize it to the maximum size of the monitor.

(Correct)

Question 10: Incorrect

The Accounting Manager requests that a schedule be created to automatically post journals from
subledgers at different times. Which journal attribute should you use to set the automatic posting
criteria?

Journal Source

(Correct)

Journal Category

Journal Batch

(Incorrect)

Journal Description

Question 11: Incorrect

Which subject area has been enhanced to allow you to drill down from OTBI General Ledger
Reports to a General Ledger journal?

General Ledger - Journal Transaction Balances Real Time

General Ledger – Journal Balances Real Time

General Ledger – Summary Journals Real Time

(Incorrect)

General Ledger – Journals Real Time

(Correct)

Question 12: Incorrect

While creating a Journal Entry Rule Set, you are not able to use an Account Rule recently created.
Which two options explain that? (Choose two.)

The Account Rule’s conditions are not defined

(Incorrect)

The Account Rule’s chart of accounts has no account values assigned

The Account Rule is defined with a different chart of accounts form the Journal Entry Rule Set

(Correct)

The Account Rule is using sources assigned to different event classes from that of the
associated Journal Entry Rule Set

(Correct)

Question 13: Incorrect

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?

Funds available will change when the invoice is approved

The funds reserved for the purchase order is reinstated while the invoice expenditure is
reserved by USD 100

(Correct)

The budget will increase by USD 100 and the funds available will decrease by USD 100

(Incorrect)

The budget and funds available will increase by USD 100

Question 14: Incorrect

In Financial Cloud, which three reporting tools can be used to access General Ledger balances?
(Choose three.)

Application Composer
 Oracle Enterprise Repository

Oracle Transactions Business Intelligence

(Correct)

Financial Reporting Studio

(Correct)

Smart View

(Correct)

Question 15: Incorrect

Your enterprise structure has one ledger and two business units. Business unit one wants to enable
budgetary control for Requisitioning only on Procure-to-Pay Business Functions and business unit
two wants to enable budgetary control for Payable Invoicing only in Procure-to-Pay Business
Functions. Which two statements are correct? (Choose two.)

While defining control for business unit two, enable control at Requisitioning and define the
exceptions to only include invoicing

While defining control for business unit one, enable control at purchasing and define the
exceptions to only include requisitioning

Define budgetary control at ledger level with Budgetary Control Exceptions for each business
unit

(Incorrect)

While defining control for business unit one, disable control for Purchasing, Payable Invoicing,
and Receiving

(Correct)

Define budgetary control at ledger level and only encumbrance control at the business units

Define control for business unit two to disable control for Requisitioning, Purchasing, and
Receiving
 (Correct)

Question 16: Incorrect

Your Financial Analyst needs to interactively analyze General Ledger balances with the ability to
drill down to originating transactions. Which three features facilitate this? (Choose three.)

Sunburst reports

Online Transactional Business Intelligence

Account Inspector

(Correct)

Account Monitor

(Correct)

Smart View

(Correct)

Question 17: Incorrect

You need to define multiple allocation rules as efficiency as possible.

Which three components can be reused across allocation rules? (Choose three.)

Point of View (POV)

(Correct)

Formulas

(Correct)

Run Time Prompts (RTP)

RuleSets

(Correct)

Question 18: Incorrect

Larger image

You just submitted the Accounting Configuration. What two things must happen before you can
enter journals? (Choose two.)

You must re-deploy the chart of accounts

A Data Access Set with full read/write access to the ledger is automatically created

(Incorrect)

You must define a Data Access Set to obtain full read/write access to ledgers in the
Accounting Configuration

(Correct)

You must assign the job role and data security context to each user

(Correct)

Question 19: Incorrect

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 is Oracle’s recommended approach to performing

consolidations?

Use General Ledger’s Financial Reporting functionality to produce consolidated reports by

balancing segment where each report represents a different subsidiary. Any eliminating
entries can be entered in yet another separate balancing segment

(Correct)

Use Oracle Hyperion Financial Management for this type of complex consolidation

(Incorrect)

Use General Ledger’s Balance Transfer programs to transfer subsidiary ledger balances to the
parent ledger, and then enter eliminating entries as a separate balancing segment in the
parent ledger.
 Define multiple ledgers for consolidation and report on ledger set

Question 20: Incorrect

In which two ways can your users customize the Springboards and Work Areas to suit their
individual working styles? (Choose two.)

Users have very little control their Springboards and Work Areas; they can only resize columns

They can use Personalization to move and remove regions from those pages

(Correct)

They can have the System Administration customize pages for them using Page Composer

They can format each table by hiding and showing columns, moving columns, and resizing
columns

(Correct)

Question 21: Incorrect

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?

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

(Correct)

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.

(Incorrect)

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.

Use Oracle Hyperion Financial Management for this type of complex consolidation.
Question 22: Incorrect

You want to specify Intercompany System Options. Which three factors should you consider?
(Choose three.)

the approvers who will approve intercompany transactions

whether to allow receivers to reject intercompany transactions

(Correct)

whether to enforce an enterprise-wide currency or allow intercompany transactions in local

currencies

(Correct)

automatic or manual batch numbering and the maximum transaction amount

(Incorrect)

automatic or manual batch numbering and the minimum transaction amount

(Correct)

Question 23: Incorrect

Most of the accounting entries for transactions form your source system use
TRANSACTION_AMOUNT as a source of the entered amount accounting attribute. For some events,
you need to use TAX_AMOUNT as the source.

Larger image

At what level can you override the default accounting attribute assignment?

Journal Entry Rule Set

(Incorrect)

Event Type

Journal Line Rule

 (Correct)

Journal Entry

Event Class

Question 24: Incorrect

You want to automatically post journal batches imported form subledger sources to prevent
accidental edits or deletions of the subledger sources journals, which could cause an out-of-
balance situation between your subledgers and general ledger. Which two aspects should you
consider when defining your AutoPost Criteria? (Choose two.)

Use the All option for category and accounting period to reduce maintenance and ensure that
all imported journals are included in the posting process

(Correct)

Create your AutoPost criteria using minimal sources and categories

Include all of your subledger sources in the AutoPost Criteria. Divide up criteria sets by
subledger source only if you need to schedule different posting times

(Correct)

Schedule your AutoPost Criteria set to run during off-peak hours only

Question 25: Incorrect

You want to process multiple allocations at the same time. What feature do you use?

RuleSets

(Correct)

Formulas

General Ledger journal entries

Point of View (POV)

(Incorrect)
Question 26: Correct

The expense account of airfare was erroneously assigned to the account type “Liability”. Which
method should you choose to fix the problem?

Deactivate the value

Run the “Segment Value Inheritance” program

Run the “Correct Misclassified Account” program

(Correct)

Run the “Update Balance Cube Chart of the Accounting Dimension” program

Question 27: Incorrect

Encumbrance accounting is enabled for your ledger. An encumbrance journal dated 3/15/16 was
recorded for a purchase order.

The invoice was entered on 5/5/16, but the invoice accounting date was 4/20/16. The encumbrance
journal for liquidating the purchase order encumbrance is dated 5/5/16.

What is causing this?

The actual accounting date was set up under the encumbrance accounting Default Date Rule

The current transaction accounting date was set up under the encumbrance accounting
Default Date Rule

(Incorrect)

The subledger accounting option is set to system date

The system date was set up under the encumbrance accounting Default Date Rule

(Correct)

The prior related transaction accounting date was set up under the encumbrance accounting
Default Date Rule
Question 28: Incorrect

Which AMX builder method is most effective in routing the journals to the Accounting Manager
when his subordinate, The General Accountant, enters a journal?

Supervisory level approval

(Correct)

Cost center based approval

Dynamic Approval Groups

Management Chain approval

Approval Groups

(Incorrect)

Question 29: Incorrect

You entered a journal and the client is asking for the following information:

The current account balance

What the future account balance will be if the journal is approved and posted How will you get this
information?

Query the account balance online

Use Oracle Transactional Business Intelligence (OTBI) to query General Ledger balances

View the Projected Balances region in the Create Journals page

(Correct)

Run a Trial Balance before and after posting

(Incorrect)

Question 30: Incorrect

Budgetary control for accounts 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 year 2013. Which statement is true?

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

The Encumbrance Year End Carry Forward process will run for all the accounts to carry
forward the general ledger balances

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.

(Incorrect)

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.

If you have included 5020 and 5021 in the encumbrance rule, then only the obligation of
$10,000 USD will be carried forward

(Correct)

Question 31: Incorrect

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

revaluations and translation to revalue and translate currencies stored in the Essbase cube

calculation manager to perform allocations based on multidimensional balances and budgets

period closing and opening of ledgers to keep General Ledger Cloud and the Essbase cubes in
sync

(Correct)

journal entries and journal approval to create journals that update balances to the cube
directly
 (Incorrect)

Question 32: Incorrect

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?

Import Budget Amounts from Spreadsheet

(XCC_IMPORT_BUDGET_FROM_SPREADSHEETS_PRIV)

(Correct)

Import Budget Amounts (XCC_IMPORT_BUDGET_PRIV)

Manage Control Budgets (XCC_MANAGE_CONTROL_BUDGETS_PRIV)

(Incorrect)

Budget Loading (XCC_BUDGET_LOADING_DUTY_PRIV)

Question 33: Incorrect

You set up a secondary ledger using the Manage Secondary Ledger task and selected a data
conversion level of subledger. Which two actions should you now perform? (Choose two.)

Ensure that the Accounting Calendar and Currency are the same as the Primary Ledger

Define Journal Conversion Rules that include subledgers in order to transfer subledger
transactions

(Correct)

Define Journal Conversion Rules that exclude subledgers

(Incorrect)

Assign a Subledger Accounting Method to the secondary ledger

(Correct)

Define Supporting References with balances

Question 34: Incorrect

What are the two possible reasons for encumbrance created on the purchase order to go back to
the budget or funds availability? (Choose two.)

The purchase order is canceled or finally closed or rejected without performing any receipt or
invoice

(Correct)

When the purchase order is set to accrue at receipt and partially received, then canceled or
finally closed, encumbrance goes back to the extent of the unreceived amount

(Correct)

The requisition reserved successfully undergoes amendment and is rejected in the reapproval

(Incorrect)

When the requisition is set to accrue at period end and partially billed and then canceled or
finally closed, encumbrance goes back to the budget to the extent of the unbilled amount

Question 35: Incorrect

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

Define three segments for the company, department, and natural account. The qualifiers for
the first segment should be primary balancing segment and intercompany segment, cost
center segment, and natural account segment, respectively.

Define four segments for the company, department, natural account, and intercompany
segment. The qualifiers should be primary balancing segment, cost center segment, and
natural account segment, and intercompany segment, respectively.

Define three segments for the company, department, and natural account. The qualifiers
should be primary balancing segment, cost center segment, and natural account segment,
respectively.

(Incorrect)

Define five segments for the company, department, natural account, intercompany, and
future use segment. The qualifiers should be primary balancing segment, cost center
segment, natural account segment, intercompany segment, and no qualifier, respectively.

(Correct)
Question 36: Incorrect

On which three occasions are Essbase balances updated? (Choose three.)

every time the tree version is published

(Correct)

every time you run the batch program called “Update Essbase Balances”

every time you open a new period

(Correct)

every time journals are posted to the general ledger

(Correct)

at report run-time

(Incorrect)

Question 37: Incorrect

You are using budgetary control. You have an open purchase order for $500 USD, and an invoice
for $300 is matched to the purchase order. What will be the funds status of the purchase order and
the invoice?

Both are Partially Reserved

The purchase order is Liquidated and the invoice is Partially Reserved

The purchase order is Partially Liquidated and the invoice is Partially Reserved

(Correct)

The purchase order is Partially Liquidated and the invoice will be Reserved

Both are reserved

(Incorrect)
 The purchase order is Open and the invoice is Validated

Question 38: Incorrect

The budget managers specify the budget accounts they want to monitor and decide on percentage
threshold of funds availability. Where must you define the details while analyzing budget balances
in the Budget Account Monitor page?

Budget Controller

Budget Group

(Incorrect)

Account Group

Budget Account Group

(Correct)

Application Development Framework Desktop Integration (ADFdi)

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Overview

Q&AQuestions and answers

Notes

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About this course

1Z0-1054-20: Oracle Financials Cloud: General Ledger 2020 Implementation Essentials

By the numbers
Skill level: Expert Level
Students: 627
Languages: English
Captions: No
Description

Journal Processing

Process journal entries

Configure automated journal processing

Explain the journal approval set up

Configure allocations and periodic entries

Explain the secondary ledger and reporting currencies

Intercompany Processing
 Design the Chart of Accounts and segment level rules for intercompany

Set up Intercompany Accounting (system options, transaction types, organizations)

Describe intercompany balancing

Process intercompany transactions and periods

Process intercompany reconciliations

Period Close

Explain the Close Process

Configure and process revaluations

Configure and process translations

Configure and process consolidations

Analyze reconciliations
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Enterprise Structures

Configure the Chart of Accounts

Explain Essbase

Set up accounting hierarchies

Set up the accounting calendar English

Configure Chart of Accounts Security

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Teach on Udemy
Configure the legal entity structure and define the relationship to the Chart of Account
Get the app
About us
Configure Ledgers
Contact us
Subledger Accounting
Careers
Blog
Create and manage Accounting Rules
Help and Support
Affiliate
Create and process subledger accounting entries
Terms
Explain the journal description rules
Privacy policy
Identify supporting references
Sitemap
Reporting & Anaytics
Udemy
Explain how to design and use various reporting tools
© 2021 Udemy, Inc.
Set up the Financials Reporting Studio

Explain OTBI and GL Subject Areas

Describe Smart View accounting inquiry and analysis

 Describe the General Accounting Dashboard and Work Areas

Analyze budgets versus actuals

Budgetary Control and Encumbrance

Configure and Process Budgets

Explain how to analyze and monitor Budget Consumption

Favorite this course
Configure Encumbrance Accounting

Process Encumbrance Journals

Journal Processing

Process journal entries

Configure automated journal processing

Archive this course
Explain the journal approval set up

Configure allocations and periodic entries

Explain the secondary ledger and reporting currencies

Intercompany Processing

Design the Chart of Accounts and segment level rules for intercompany
Gift this course
Set up Intercompany Accounting (system options, transaction types, organizations)

Describe intercompany balancing

Process intercompany transactions and periods

Process intercompany reconciliations

New
Period Close
announcement emails
Explain the Close Process

Configure and process revaluations

Configure and process translations

Configure and process consolidations

Analyze reconciliations
Promotional emails
Close monitor

Enterprise Structures

Configure the Chart of Accounts

Explain Essbase

Set up accounting
Request a refund hierarchies
Progress
Set up
cannot
the accounting
be changedcalendar
for this item
Progress cannot be changed for this item
Configure Chart of Accounts Security

Configure the legal entity structure and define the relationship to the Chart of Account

Configure Ledgers

Subledger Accounting

Create and manage Accounting Rules

Create and process subledger accounting entries

Explain the journal description rules

Identify supporting references

Reporting & Anaytics

Explain how to design and use various reporting tools

Set up the Financials Reporting Studio

Explain OTBI and GL Subject Areas

Describe Smart View accounting inquiry and analysis

Describe the General Accounting Dashboard and Work Areas

Analyze budgets versus actuals

Budgetary Control and Encumbrance

Configure and Process Budgets

Explain how to analyze and monitor Budget Consumption

Configure Encumbrance Accounting

Process Encumbrance Journals

What you’ll learn

Anyone preparing for 1Z0-1054-20: Oracle Financials Cloud: General Ledger 2020
Implementation Essentials

Are there any course requirements or prerequisites?

Basic knowledge and hands-on Oracle Cloud General Ledger Module

Who this course is for:

Oracle Cloud Consultant(Functional/Techno-Functional)

Instructor
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