1Z0-1059-20 Online Practice Questions and Answers

Which statement does NOT describe how revenue is handled under the latest standards under ASC 606 and IFRS 15?

A. You accrue for goods and services that you owe to customers because either you or they have relied on the contract. You no longer defer revenue.

B. You value the accrual at estimated consideration and it is a monetary debt.

C. You book the invoiced amount to the PandL when you meet the regulatory definition by Industry.

D. You calculate the liability at inception and book it when either party acts. An Act could be shipping or invoicing.

E. Liability is a list of goods and services you actually owe to the customers for future satisfaction via transfer.

A business entity (your client) sells a computer, monitor, keyboard, and mouse as a single package to consumers. The entity has identified that this bundle is a distinct performance obligation. How should you configure

Revenue management to ensure that these items are grouped into one performance obligation?

A. By defining a Revenue Item Group

B. By defining a Standalone Selling Price Profile.

C. By defining a Performance Obligation Template.

D. By defining a Contact Identification Rule.

What are two major changes when comparing the new revenue recognition guidance under ASC 606 and IFRS 15 versus the old standard?

A. Revenue and performance obligation liabilities are not dependent on billing.

B. Revenue can be recognized for performance obligations only using the "Point in Time" approach.

C. Pricing estimates cannot be used In the absence of pricing data.

D. Expected consideration value is applicable to all industries.

When deciding how to set up the system to recognize revenue, it is important to understand the extent of revenue deferral and the subsequent timing of revenue recognition. Which two statements are true when you

consider that recognition depends on the nature of the contingency? (Choose two)

A. Payment-based contingencies do not always require payment before the contingency can be removed and revenue recognized

B. Time-based contingencies must not expire before the contingency can be removed and revenue recognized

C. Time-based contingencies can expire, but the contingency will have to be removed manually before the revenue is recognized if payment is not due yet

D. Pre-billing customer acceptance clauses require the recording of customer acceptance in the feeder system, or its expiration, before importing into Receivables for invoicing. Customer acceptance or its expiration must occur before the contingency can be removed and the order can be imported into Receivables for invoicing.

E. Post-billing customer acceptance clauses must expire (implicit acceptance), or be manually accepted (explicit acceptance), before the contingency can be removed and revenue recognized.

Which is NOT a predefined Accounting Class for Revenue Management?

A. Contract Discount

B. Contract Liability

C. Contract Unearned Revenue

D. Contract Asset

At which level does Oracle Revenue management perform accounting?

A. Legal entity level

B. Contract level

C. Performance obligation level

Oracle Revenue Management is part of_____________________predefined offering.

A. Enterprise Contracts

B. Fusion Accounting Hub

C. Incentive Compensation

D. Financials

Your organization Is selling a warranty plan to customers that covers appliances for one year. Revenue must be recognized gradually by month until the warranty expires.

Which Revenue Scheduling Rule Type needs to be defined for the Performance Satisfaction Plan?

A. Fixed Schedule

B. Variable Schedule

C. Daily Revenue Rate, All Periods

D. Daily Revenue Rate, Partial Periods

E. Partial Schedule

F. Daily Revenue Rate

Which three attributes are helpful in defining a Contract Identification Rule?

A. Product Description

B. Quote Number

C. Delivery Address

D. Bill To Customer

E. Ledger

F. Business Unit

Which three statements about Effective Periods are true?

A. If effective periods are not defined, Revenue Management uses the General Ledger calendar.

B. Effective Periods are used for standalone selling prices and for creating journal entries.

C. Gaps between periods are not allowed

D. You cannot have overlapping periods.

E. Effective Periods only define the rage where standalone selling prices of an item should be effective.