1Z0-1054-22 Online Practice Questions and Answers

Correct Answer: C

To create an Income Statement using Smart View, you should use Ad Hoc Analysis. Ad Hoc Analysis is a Smart View tool that allows users to view and analyze financial data from General Ledger Cloud using Essbase cubes. Users can create reports such as Income Statements or Balance Sheets by selecting dimensions and members from Essbase cubes and retrieving data into Excel worksheets. Users can also perform actions such as drilling down, pivoting, zooming in or out, or expanding or collapsing members

Correct Answer: A

The Journal Source attribute is used to set the automatic posting criteria for journals from subledgers. You can specify whether to post journals automatically or manually based on their source, such as Payables, Receivables, or Projects4.

Correct Answer: B

According to Oracle documentation2, you should define the default intercompany balancing rule at the chart of accounts level when you have three ledgers that use the same chart of accounts with one intercompany payable and one intercompany receivable account. The chart of accounts level rule applies to all ledgers that share the same chart of accounts. Intercompany balancing rules are used to generate the accounts required to balance journals that are out of balance by legal entity or primary balancing segment values. Therefore, option B is correct. Option A is incorrect because the primary balancing segment level rule applies only to journals that are out of balance by primary balancing segment values within a ledger. Option C is incorrect because the legal entity level rule applies only to journals that are out of balance by legal entity within a ledger. Option D is incorrect because the ledger level rule applies only to journals that are out of balance by ledger.

Correct Answer: ACE

According to Oracle documentation1, the following statements are true regarding the use of a clearing company value: You must map legal entities to balancing segment values in order to use a clearing company, if you do not map legal entities to balancing segment values, then a clearing company can be applied to any journal within the ledger, and if you choose to use a clearing company, you can define a default clearing company value or select the clearing company value directly in the general ledger journal. Therefore, options A, C, and E are correct. Option B is incorrect because clearing companies are supported by Oracle. Option D is incorrect because if you map legal entities to balancing segment values, then a clearing company can be applied across legal entities, not only within a legal entity.

Correct Answer: B

According to Oracle documentation2, you should create a Data Access Set that allows access to the UK Ledger to allow users with the General Accountant job role to access the UK Ledger. A Data Access Set is a security feature that defines the ledgers and balancing segment values that a user can access. You can assign Data Access Sets to users or roles using the Manage Data Access for Users page. Therefore, option B is correct. Option A is incorrect because assigning the security context value of UK Ledger to the user/role combination does not enable access to the ledger. Option C is incorrect because assigning the General Accounting Manager role to those users does not enable access to the ledger. Option D is incorrect because assigning the UK reference set to the user/role combination does not enable access to the ledger.

Correct Answer: D

According to Oracle documentation, when there is a business requirement for a subsidiary company to report to the parent company on a monthly basis with different currencies and no requirement to have daily balances, you should recommend Balance level as the data conversion level. A Balance level data conversion level enables you to translate balances from one currency to another at month-end or quarter-end for reporting purposes. A Balance level data conversion level minimizes the data stored in the reporting currency because it does not store daily balances or journal details. Therefore, option D is correct. Option A is incorrect because a Subledger level data conversion level stores daily balances and journal details in the reporting currency. Option B is incorrect because a Journal Level data conversion level stores journal details in the reporting currency. Option C is incorrect because an Adjustment only level data conversion level does not translate balances from one currency to another. Option E is incorrect because a Spreadsheet level data conversion level does not exist.

Correct Answer: BC

To achieve the requirement of only single currency journals being entered for this company, you should enable "Limit a Journal to a Single Currency" on both ledger options and journal sources. Ledger options are settings that apply to a specific ledger, such as journal processing options, currency options, and average balance processing options. Journal sources are identifiers that indicate where a journal originated, such as manual entry, subledger accounting, or import. You can enable "Limit a Journal to a Single Currency" on both ledger options and journal sources using the Specify Ledger Options and Manage Journal Sources tasks in Setup and Maintenance. This will enforce single currency journals for journals entered on the Create Journal page and for journals that are imported. You do not need to enable "Limit a Journal to a Single Currency" on journal lookup codes, as these are codes that indicate the status of a journal, such as Entered, Posted, or Reversed. You do not need to enable "Limit a Journal to a Single Currency" on journal category, as this is an attribute that classifies journals by purpose or function, such as Purchase Invoices or Allocations. You do not need to enable "Limit a Journal to a Single Currency" on profile option, as this is a setting that affects the behavior of an application or feature for a user or responsibility. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Define Ledgers 12

Correct Answer: B

According to the Oracle documentation3, "Oracle Essbase is embedded within Oracle General Ledger and provides multidimensional balances cubes. Every time a transaction or journal is posted in General Ledger, the balances cubes are updated at the same time." Essbase balances cubes are used for interactive reporting and analysis, but also for performing allocations using calculation manager. Calculation manager enables you to create allocation rules that use balances and budgets from Essbase as sources and targets. The other options are not features that leverage Essbase cubes.

Correct Answer: BC

he two true statements regarding intercompany accounting for Financials Cloud, Projects, Inventory, and SCM are that Intercompany Balancing Rules are defined centrally and applied across Financials and Projects, and that each product has its own Intercompany Accounting feature that needs to be configured separately. Intercompany Balancing Rules are defined in General Ledger Cloud and are used to balance cross-ledger intercompany journals between Financials and Projects. Each product also has its own Intercompany Accounting feature that enables intercompany transactions within the product or across products. For example, Payables and Receivables have Intercompany Invoicing, Projects has Intercompany Billing and Capitalization, Inventory has Intercompany Transfer Pricing, and SCM has Intercompany Drop Shipments. Intercompany balancing rules in General Ledger do not need to be mapped with the intercompany configuration in each product, as they are independent of each other. In Financials Cloud, Intercompany Balancing Rules are not used to balance both cross-ledger allocation journals and single-ledger journals, as they are only used to balance cross-ledger journals. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Configure and Process Intercompany 12

Correct Answer: BC

you can use a report batch to run reports at a specific time to create a set of snapshot reports. A report batch is a collection of reports that you can schedule and run together. Therefore, option B is correct. You can also use Workspace to assemble multiple reports into a book that can be printed and viewed individually or as an entire book. A book is a collection of reports that you can organize into sections and chapters. Therefore, option C is correct. Option A is incorrect because BI Publisher is not an Oracle recommended way to create a month-end reporting package for an upcoming Audit Committee meeting. Option D is incorrect because Smartview is not an Oracle recommended way to create a month-end reporting package for an upcoming Audit Committee meeting. Option E is incorrect because OTBI is not an Oracle recommended way to create a month-end reporting package for an upcoming Audit Committee meeting.