Financial Accounting-Topic Wise Questions

Time 120 minutes Chart of Accounts 1. A chart of accounts ( Multi ) a. b. c. d. can be allocated to multiple company code can be defined as the group chart of accounts only contains definitions for G/L accounts can only allocated to one company code.

2. Which of the following statements is true when configuring a group chart of accounts? a. In the company code segment of every operational account, the group account number will be a required entry. b. The group chart of accounts is assigned to the company code in the company code global parameters screen. c. When the assignment is made between the group and operational chart of accounts, the field group account number becomes an optional entry. d. A one to one relationship exists between the group account number and the operational account number in the G.L. master. 3. Which are true regarding operational chart of account. (Single). a. To perform allocations between companies codes in the controlling each company code must be assigned to its own operational COA. b. A company code can choose to work with multiple operational COA. c. If cross company code controlling is required the same operational COA must be used. d. Company code with different base currency must work with there own operational COA. e. The operational COA is optional by co. code. Organizational Structure 4. A client. ( Single ) a. only contain a single chart of accounts b. may contain multiple charts of accounts c. only use one exchange rate type d. only have one controlling area 5. Identify the correct statement(s) regarding organizational elements within the R/3 System. a. The Business area is defined at client level and changed in transactions defaulted by Cost Center if cost center defaulted in cost element. b. A plant is a location in which inventory quantities and values are stored or manufactured. c. A Controlling area can comprise several company codes using different chart of accounts but must operate in the same currency. 6. Which of the following statements is true ? ( Single Choice) a. A Company code can belong to more than one controlling area. b. A plant must be allocated to a company code c. A controlling area and a company code must have the same local currency.

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Payment advice b.e. Business area can be mapped to profit center in company in order to produce more accurate P&L account. 11. A goods receipt is the recording of the movement of materials into the warehouse. b. Business area is used for internal P&L a/c and Balance sheet. depending upon the account group. Prevents the Chart OF accounts from being changed in the Company Code 8. a.Financial Accounting-Topic Wise Questions d. Identify the correct statement(s) relating to how the main business processes are integrated in the SAP R/3 System. e. A company code may belong to more than One Controlling Area. d. c. In SAP. suppressed or optional. Each company codes uses exactly one operating chart of accounts and one controlling area for assignments d. Which correspondence extracts all items in the chosen period from a customers account displays the balance carried forward balance and a closing balance of the account ? a. Account statement d. The productive indicator in the Company Code controls the following. Identify the correct statement a. Page 2 of 11 . d. the corresponding financial transaction must be entered through the financial module of R/3. A customer delivery is the transfer of the ownership of goods. picking the goods for shipment. 10. a financial document which updates the inventory account and an accrued liability account is created b. The account number may be assigned by the user externally. A customer delivery includes. payment processing reduces the liability to a vendor and a company codes cash balance. d. Payment notice c. physically transferring the goods to the customer and financially recording the goods issue. The Invoice receipt and verification process compares the vendor invoice with the purchase order and goods receipt. Business area is defaulted to a Co code in FI. Account Receivable 9. An account group always gets assigned to a customer. code in controlling area. The business area can run across many company codes. Business area if activated in FI will necessitate an assignment in controlling area master record. i. b. all company codes can post in all business areas. Business areas are used to create internal balance sheets and income statements. b. Please click on the button next to the correct answer. a. records discounts taken and disburses payment. ( Multi Choice) a. In SAP. c. c. De-activates the delete documents and delete master data programs c. A business area and a company code are assigned to each other in the corporate structure IMG 7. c. Which of the following statements about creating customer master records are correct? a. The company code is always a required entry. Prevents the fiscal year variant from being changed in the Company Code e. Information on each screen may be defined in configuration as mandatory. Dunning notice 12. Business area is mapped to a co. Blocks Implementation Guide menu path b. creation of a delivery document. De-activates the Transport and Correction Request System d. However.

17. In case of one-time customer you have to enter the customers address in the document itself. b. In Vendor master record it is possible to activate a check for duplicate invoice at doc entry b. code or for all co. depending upon the company code. One time account group must use defined number range. and reconciliation account are included in the client level of the customer. The most efficient way to create master records is to work with the external number range not internal number range. e. e. A vendor down payment request cannot be included in payment program to produce down payment Page 3 of 11 . If a customer is also a vendor. d. A FI customer master is divided by client level and company code level. All customer belonging to the same account group must be assigned to the same reconciliation account. suppressed or optional. Bank master data for vendor can only be created with in customizing. Which of the following statement about one time account are correct. The customer master data comparison the customers in the legacy system with the customers in the R/3 System. Address. Which of the following statements are correct? a. the system can include outstanding Accounts Receivable invoice items in payment program. 13. c. c. c. The customer mater data comparison checks whether the customer master record contains a telephone number. (Multi) a. Vendor Master 16. data is automatically deleted on both chart of account level and co. Special g/l transaction is one. If a customer is also a vendor. 18. Must use account group defined for one time vendor. The alternative payer is used to transfer outstanding receivable item to the alternative payers account. c. Which of following statements are correct? [mul] a. d. Which statement is true? (Multi) a. b. If you delete a vendor master record. Changes to vendor master records can only be displayed using central function. d. c. 14. which is included in spl purpose ledger under coding block in G/L account. b. The reconciliation account defined on the customer master record is an account used to reconcile CO transactions back to FI. Which of the following about vendor transaction is correct. code level. You can block a vendor to prevent financial transaction postings for one co. Which of the following statements are correct? a. 15. control data. d. Vendor down payment is shown on balance sheet under normal reconciliation account for payables. The customer master data comparison compares which master records are already created in financial accounting but not yet created in sales and distribution. b. a. b. the system can include outstanding Accounts Payable invoice items when you clear incoming payment receipts for the customer. codes. Information on each screen may be defined in configuration as mandatory. The customer master data comparison compares which master records are already created in purchasing but not yet in sales and distribution.Financial Accounting-Topic Wise Questions e.

a. The customer has two house banks and wants all checks to be processed by bank A and all a. If the amount exceeds US$ 1000. 21. Open items posted to G/L accounts can be cleared using the payment program d. whether payments are to be made by check only or also by transfer c. Which is correct. Direct debiting or bank collection can be used in automatic payment procedures to clear customer invoices c. Which of the Following statements about automatic payment are correct ? a. A vendor down payment request is a noted item. If a customer is also a vendor system includes outstanding account receivables invoice items in the clearing. Imagine the following scenario: A company wants to execute a payment run on a daily basis and process several company codes at the same time. 20. posting date and cash discount periods the master record d. per house bank. You can precisely schedule the print program from within the application 24. Automatic Payment Program 22. You specify the payment method from within the application. The sequence of the banks for processing outgoing payments is selected randomly b. The payment proposal of the automatic payment program can only be displayed e. Here you can specify that the information is to be output to a data carrier. You can select several payment methods per country Page 4 of 11 . Co. c. You can only determine one payment method per house bank c. Customer master is divided only by client level & co. In case of one time customer – customer address in entry. Which of the following statement affect creating customer master records are correct. You store variants for print programs within customizing. A vendor down payment is cleared after final invoice is received from vendor. b. b. Account number may be assigned externally. Which is correct. You specify. code level. The payment program can pay vendor invoices using wire transfers and checks 23. In automatic payment procedures. posting date and payment terms 25. 19. Special G/L transactions(down payment)can be posted using the payment program e. amounts less than US$ 1000 are to be paid by check. a.Financial Accounting-Topic Wise Questions d. An account group gets assigned to customer b. the vendors are to be paid by bank transfer. According th which criteria does the payment program determine and select open items: a. document date and posting date c. posting date and baseline date b. code is always a reqd entry. baseline date and payment terms d. (F110 and not in FBZP) b. e. If a customer is also a vendor system includes outstanding account receivables invoice items in the payment program. a. all incoming invoices as of the second dunning level are paid automatically b. Which of the following statements are true with regard to the customizing setting for banks in the automatic payment run ? a.

with client level. And accounting data. 29. You can determine the banks to be used for payments according to postal code 26. (Multi) a. d. Which of the following statements are correct regarding creating linked customer and vendor master records for this company? (Multi) a. It is also possible to include an additional account assignment object such as cost center. 28. Information in the documents(incoming invoices) e. c. d. An individual cheque cannot be printed automatically when you manually post an Outgoing payment. displayed and optional e. You can specify by bank and method the anticipated number of days before the bank account is debited e. A parked invoice has a temporary document number assigned by the user. The vendor master record is divided into three different data areas. Only one business partner master record is created. An invoice may be parked by an accounts clerk and a workflow message sent Automatically to the supervisor. order or asset. b. sales. The account group determines the number interval for assigning the account Number to the vendor. The vendor and the customer line items will be posted to the same reconciliation account. The corresponding vendor master number must be entered in the client level of the customer master record and vice versa. Specifications in the vendor master records d. When the goods receipt is posted. b. Which of the following factors does the systems take into account in a payment run ? a.Financial Accounting-Topic Wise Questions d. d. This prevents the creation of redundant master data. e. c. If the master records are linked correctly. Which of the following statements about transactions are correct? (Multi) a. Suppose that one company is used as both a vendor and a customer. Once properly linked. b. and what fields are mandatory. Credit memos can be included in the payment program to reduce the final invoice Value paid. Accounting data and Purchasing data. Payment method specifications in the IMG c. General data. Identify the correct statement(s). suppressed. A purchase requisition is a binding contract with a vendor to supply certain materials or Services based on certain terms and conditions. The vendor and customer records that are to be linked may have different account numbers. purchasing. sales invoices and purchase invoices for this company will automatically clear against each other. MM and FI set up and use different account groups for their respective view of the vendor master record. An invoice which has been cleared by the payment program can only be reversed After the cleared line items have been reset. 30. Which of the following statements about one time accounts are correct? (Multi) Page 5 of 11 . c. whether or not the number in internally or externally Assigned. the system automatically updates the general Ledger accounts by the value of the goods receipt. Fiscal year variant b. e. Specifications made when maintaining the payment run parameters 27.

Information on each screen may be defined in configuration as mandatory. Payment method currency alone controls House Bank account ID postings to GL 35. Define house bank link c. CO production orders. House bank Account ID is linked in all FI accounting masters c. Purchasing – Invoice Verification. Which of the following statements are correct ? a. b. In a Payment method definition a. Requirement planning. One time accounts must use an account group which has been defined specifically for one time accounts. Credit memos cannot be created for a one time vendor account. The payments program can use a different House bank for each different payment method c. Which of the following statements about creating customer master records are correct? a. A house bank can be assigned to a business area within the payment program configuration 33. d. depending upon the account group. Sales orders for make-to-order function d. Goods issue to a production order – G/L account. Define allowed currency for country level 34. Capital investment orders for creating assets. e.Invoice Verification b. When creating a House bank. Define allowed currency for company code d. suppressed or optional. Between which functions in the FI-MM module does a direct relationship exist? (Multi) a. c. The company code is always a required entry. Bank 32. e. depending upon the company code. The account number may be assigned by the user externally. d. b. Which of the following statements about House banks are correct. A one time account group must use a different number range from all other account Groups. b. suppressed or optional. d. The vendor’s name and address are not held in the one time account master record. c. before assigning the House bank to a payment method in the payment program configuration e.Invoice Verification. Vendor Master currency controls AP payment e. 31. c. c. you do not need to specify the country. House Bank currency is controlled by Vendor master d. Invoice verification. Maintenance orders. b.Financial Accounting-Topic Wise Questions a. A House bank account can be defined in more than one currency d. Inventory Audit. Page 6 of 11 . e. You cannot change a one time account master record once it has been created. a. Which of the following order types are internal orders? a. House bank is linked in all FI Accounting masters b.Account Payable. Information on each screen may be defined in configuration as mandatory. 36 . An account group always gets assigned to a customer. Define a maximum and min payment b. House bank master data must be created in advance.

d. The system creates the balance carried forward for every balance sheet account for new fiscal year. The p&l accounts balance is transferred to a Retained Earnings account. Once an order has been released. Reports e. b. Document date c. c. System. which date is used to determine the exchange rate if the translation date is not entered ? a. User. Baseline date d. User menus 40 The date format can be defined by the following: a. Posting during the Balance Carry forward program is possible. Which of the following statements are correct regarding Internal Orders? a. The balance carry forward program can be run at any time during the fiscal year. Plant Closing 41 Which of the following statements regarding year-end closing are correct? a. c. Web address d. only closing entries can be made. Transactions can be allowed or disallowed depending in the order status. d. re-arrange fields. add pushbuttons and change input fields into radio buttons? a. You determine the retained earning account as part of the selection criteria when executing the Balance Carry Forward program. GuiXT b. Company e. GuiCapture c. Transactions c. Environment 38 That system tool allows you to add graphics. Posting date b. Currency 42. SAPShow e. Files b. SAPGui d. Local currency b Group currency c Transaction currency d Group & transaction currency Page 7 of 11 . Country b. Additional order status categories can be created in the order master. Entry date 43. c. Profile Generator 38 Which of the following can you add to a Favorites list? a. b. The en entering a document using a foreign currency. Which type of currency will R/3 always track when posting a document? (Single) a.Financial Accounting-Topic Wise Questions 37.

The posting date is determined by either the run date or the run schedule. After running the recurring document posting. Field values can be changed in recurring document. d. Posting period variant. Validations and substitutions can be carried out in FI but not in the Special Purpose Ledger c. a. The reconciliation account b. these are defined at country level within configuration. b.Financial Accounting-Topic Wise Questions e Local & transaction currency. b. instead of having to change individual items in the documents. Which of the following statements in correct?[single] a. Two of the currencies available in the FI system are the transaction currency and the company code currency. A new document number is created for the reversal document. Where are posting periods defined? a. 46 Choose the correct statements regarding recurring documents. If a reversal date is not specified. Page 8 of 11 . the valid time period must be defined. 47. The field status definition controls the Document type. c.this function allows you to change a whole group of line items simultaneously. thus eliminating the need to make individual selection entries. Fiscal year variant. The tax rates and tax codes for the various countries are predefined by SAP. When creating a recurring document. The main purpose of a payment advice note is that it can be used to automatically search for and then compare open items as part of the clearing process. e. d. The house bank and payment method 48. Posting keys are used to define the screen layout for document entry and take priority over other field status groups. Closing period variant Document Control 45 Which of the following statements supports the reversal of a document? a. The payment terms and payment block d. The original recurring document can be deleted from the batch input menu. The company code c. Documents originating in other modules should be corrected there to allow the changes to flow naturally through to financial accounting. Posting key and Account number. c. c. c. b. the system reverses the document using the posting date of the document to be reversed. What data can you change using this function? a. the next run date cannot be displayed. bulk change of line item . d. d. b. Field status variant. The documents number assignment can be controlled using the Account type. b. Posting Period 44. which of the following statements are correct?[mul] a. The original document contains no cleared line items. 49.

b. Activity types can be a. 50. Closing period variant 54. e. b. Field status 51. d. The number range assigned to the document type c. The number range assigned to the account group. e. Account group d. a. Document type c. Where are the posting period defined. The document type controls which company code is used in a G/L posting. when you enter a document using the relevant G/L account. (Single) a. What controls whether a line item is a debit or credit and specifies the type of account for a line item. The number range assigned to the Posting key d. All cost elements are linked to Activity type. Distributions are used when the original cost information is necessary on the receiver. assessments cannot. Distributions are made using the original primary cost elements. assessments cannot. b. assessments are used when this information is not necessary on the receiver. c. 55. (Single). Closing of period is controlled by. Posting period variant. Field status variant d. Field status variant. Fiscal year variant. Distributions can be made using statistical key figures. b. 56. assessments are made using secondary cost elements. b. Posting key. The field status definitions determine the screen layout. The field status group 52. What controls the number assignment assigned to a financial document in R/3 (single). c. d. Planning of price is done for a activity for all cost centers Page 9 of 11 . (Single) a. d. Fiscal year variant. a. Cost element is a must for all GL accounts c. Posting Period variant. d. Closing period variant.Financial Accounting-Topic Wise Questions d. Distribution can be made for both planned and actual figures. b. All P&L GL accounts except tax accounts should be cost element. What is the difference between distribution and assessments? a. Out of the following select the right answers a. 53. b. c. restricted for a single cost center directly created for a restricted period only created with primary cost element assignment All activity types are used in Cost center planning without any restriction. c. Cost element category controls FI posting only.

the system can automatically calculate the profit and loss statement result. e. not both. b. A financial statement version displays either a balance sheet or a profit and lost statement. Determines one-time accounts for accounts payable and accounts receivable. cost element. The system can translate a financial statement into any currency for reporting purposes.Financial Accounting-Topic Wise Questions 57. unless you are using FI-LC General Ledger Account 59. In order to manage line items as open and cleared for venders and customers the open item management¡± Indicator must be on in the reconciliation account master record. 61. Which of the following statements are corrent?[mul] a. c. b. In order to be able to manage line items as open and cleared. d. Cost center can be defaulted in all FI line items in all GL accounts b. An account group. b. Vendor and customer account are always open item management accounts. Cost center can be defaulted in GL accounts provided it is assigned to company code. You can create a G/L account when settling an order. c. Uses a field status group to control the field layout for the maintenance of mater records. the open item management indicator must be on in the G/L account master record. I order to be able to manage line item as open and cleared. Time dependant data is possible in Cost center. a. d. When displaying a financial statement. You can create a G/L in a controlling area if you specify the chart of accounts and the company code. c. Defines the number range for a mater record. Is defined for every company code.[mul] a. You have several options for creating G/L accounts . d. c. You can create a G/L account in a company code without using a sample account. the line item display indicator must be on in the G/L account mater record. d. Which of the following statements about financial reporting are correct? a. Activity type and SKFs Reports 58. You can create a G/L account in chart of accounts. You can obtain a summarized financial statement for any hierarchy level defined in the financial statement version. Page 10 of 11 . You can create a G/L account in a company code using a samples account. b. Internal order can be defaulted in all FI line items in all GL accounts c. e. Which of the following statements are correct regarding open item management?[mul] a. A financial statement version cannot include more than one company code. e. Select out of the following which statements are correct. 60. Cost center is linked to company code as Chart of accounts is linked to the same company code. d.

Consolidation trading partner. A G/L account will have the changes made to it if any tracked in a separate data base. c. c. Before you can create a new primary cost element. When you create a G/L account the following entries must always be assigned to the account a. e. Multiple currencies can be assigned in G/L master record to facilitate reporting. Short text. b. 62. The business areas have been defined.Financial Accounting-Topic Wise Questions e. b. d. Page 11 of 11 . The primary cost element is one type of master data in Controlling. The G/L account must be defined. The controlling area must be defined. b. Key words may be input as search criteria on a G/L master for use with only one Co. 64. Account Group. The plant must be in the system. the sort key must be defined as the document number. The cost center must be defined. In order to be able to manage line items as open and cleared. code c. certain prerequisites need to be fulfilled Which of the following conditions must be fulfilled BEFORE you can create primary cost elements? (37-2) a. Sample account number e. All G/L Balance Sheet accounts are marked with Account type B. d. d. 63. Balance sheet a/c or P&l a/c & P&L statement type. Which of the following are true: a.