Oracle Oracle Certifications 1Z0-516 Questions & Answers

• Question 51:

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

  A. Grandparenting is not allowed (parents cannot become children).

  B. You must include every parent value that is defined in the chart of accounts to a rollup group.

  C. General Ledger will not automatically maintain rollup relationships from the summary level to the lowest detail level.

  D. You can drill down only on balances from the summary level to the lowest detail level, and not to intermediate detail levels.

  Correct Answer: D

• Question 52:

  Select three activities that must be performed to complete the setup of the key accounting flexfield. (Choose three.)

  A. Create aliases.

  B. Define a value set.

  C. Define security rules.

  D. Define an account structure.

  E. Define valid segment values.

  F. Create account combinations.

  Correct Answer: BDE

• Question 53:

  In the context of adding, deleting, and disabling secondary ledgers, select two valid statements. (Choose two.)

  A. The subledger accounting method must be assigned if defining a balance- or journal-level subledger.

  B. The subledger accounting method must be assigned only to the secondary ledger in case of defining a subledger journals-level secondary ledger.

  C. The subledger accounting method must not be assigned if defining an adjustments-only secondary ledger for manual adjustments in General Ledger.

  D. The subledger accounting method need not be assigned to the primary ledger for assigning a subledger accounting method to the adjustments-only secondary ledger.

  E. The subledger accounting method must be assigned to both primary and secondary ledgers to use the adjustments-only secondary ledger for both manual and automated adjustments from subledger accounting.

  Correct Answer: CE

• Question 54:

  Which three activities would use summary accounts? (Choose three.)

  A. creating a monthly recurring standard journal entry to amortize goodwill

  B. allocating the total monthly costs of the Information Services department to other departments

  C. estimating a sales commission accrual based on the total of all product sales for each division

  D. formulating a budget for employee benefits in each company based on the total of all budgeted employee salaries

  Correct Answer: BCD

• Question 55:

  A manager wants to review the cash balance by company. He has asked you to create the summary

  account template. The company's accounting flexfield has four segments:

  Company (5 values)

  Cost Centers (30 values)

  Region (4 values)

  Account (180 values)

  The total number of cash accounts is five that are associated with two parents:

  Three accounts are associated with the parent called "Checking."

  Two accounts are identified with the parent called "Savings."

  To combine the cash parents, you created a rollup group named "Cash."

  How many accounts would the summary account template generate?

  A. 10

  B. 40

  C. 60

  D. 240

  E. 1200

  Correct Answer: A

• Question 56:

  Select three levels where additional reporting currency representations can be maintained. (Choose three.)

  A. batch

  B. journal

  C. balance

  D. subledger

  Correct Answer: BCD

• Question 57:

  The client's GL accountant comes to you with a problem. A journal cannot be posted because it has not been approved. The preparer cannot submit the journal for approval because the Approve button is disabled in the Enter Journals form and the supervisor has not received a notification requesting the approval. What could be the possible cause for this problem?

  A. The profile option GL: Allow Preparer Approval must be reset.

  B. One of the GL account code combinations in the journal is invalid.

  C. Authorization limits have not been defined properly and the GL period is closed.

  D. Budgetary control has been enabled for the set of books and funds have not been reserved for the journal.

  Correct Answer: D

• Question 58:

  Identify the different types of data that can be processed using the GL Interface. (Choose three.)

  A. rates

  B. budget

  C. vendors

  D. statistical

  E. intercompany

  F. currency codes

  Correct Answer: BDE

• Question 59:

  Your client is in the process of closing its first year-end. The client completed the accounting cycle and found that several income statement accounts have a remaining balance. What would be the likely cause of these remaining balances?

  A. Natural accounts were defined as parent values.

  B. Natural accounts were defined to not allow posting.

  C. Natural accounts were defined with an incorrect account type.

  D. Natural accounts were defined to store both statistical and monetary values.

  Correct Answer: C

• Question 60:

  ABC Inc. wants to have 16 accounting periods that include an adjusting period for each quarter in its 4-5-4 accounting calendar. Its fiscal year-end is March 31.

  The normal month-end is on a Friday, but the last day of each quarter is always on the last day of the quarter's final calendar month.

  Select the remaining setup for the calendar to meet the requirement.

  A. defining 12-monthly periods based on the 4-5-4 calendar ending on the last day of each month; defining an adjusting period on the last day of each quarter

  B. defining 12-monthly periods based on the 4-5-4 calendar ending on the last Friday of each month; defining four adjusting periods for March 31 of the fiscal year

  C. defining 12-monthly periods based on the 4-5-4 calendar ending on the last Friday of each month; defining an adjusting period on the last Friday of each quarter

  D. defining 12-monthly periods based on the 4-5-4 calendar ending on the last Friday of each month, except for the last month of each quarter ending on the last day of the month; defining an adjusting period for each of the last day of the quarter

  Correct Answer: D