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

1. Identify three Payables system setup options. (Choose three.)

A) alwaystake discount
B) application accounting definitions
C) create interest invoice
D) bill-to location
E) allow void and reissue

2. ABC Company in the United Kingdom has three subsidiaries in three different countries. It consolidates the accounts of all subsidiaries and the headquarters by using the average balances.
John is new to Oracle General Ledger. He has just joined ABC Company. He needs to consolidate for the current month. On completion of the consolidation, John was not able to tally the consolidated figures with the ledgers. Select two reasons why John failed to see the correct balances. (Choose two.)

A) He forgot to add the priorperiods consolidation in the current period.
B) John may not have reversed the priorperiods consolidation in the current period.
C) Manual adjustment needed after every consolidation was not performed.
D) Posting of the consolidation journals may have failed.

3. Identify three statements that are true about bank account information. (Choose three.)

A) Bank accounts are used to calculate the supplier's discount.
B) Payablesuses an internal bank account to disburse funds to suppliers.
C) Disbursement bank accounts cannot be used for payment.
D) Receivablesuses a bank account to receive payments from customers.
E) Payables, Receivables, and/or Treasury uses bank accounts.

4. ABC Company in India imports baking equipment from XYZ Company in the USA. 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 is not impacted at all by this rate change.
B) ABC Company has a positive impact by this rate change.
C) XYZ Company has a positive impact by this rate change.
D) ABC Company is not impacted at all by this rate change.

5. When structuring the summary accounts hierarchy, what fact must you take into consideration?

A) You can drill down only on balances from the summary level to the lowest detail level, and not to intermediate detail levels.
B) General Ledger will not automatically maintain rollup relationships from the summary level to the lowest detail level.
C) You must include every parent value that is defined in the chart of accounts to a rollup group.
D) Grandparenting is not allowed (parents cannot become children).

Solutions: