Oracle Oracle Certifications 1Z0-1054-22 Questions & Answers

• Question 101:

  Management wants to use the budget transfer function available on the Review Budgetary Control Balances page. Which privilege is required to perform the budget transfer?

  A. Import Budget Amounts from Spreadsheet (XCC_IMPORT_BUDGET_FROM_SPREADSHEETS_PRIV)

  B. Import Budget Amounts (XCC_IMPORT_BUDGET_PRIV)

  C. Manage Control Budgets (XCC_MANAGE_CONTROL_BUDGETS_PRIV)

  D. Budget Loading (XCC_BUDGET_LOADING_DUTY_PRIV)

  Correct Answer: C

  The privilege required to perform the budget transfer function available on the Review Budgetary Control Balances page is Manage Control Budgets (XCC_MANAGE_CONTROL_BUDGETS_PRIV). This privilege allows users to create, modify, or delete control budgets and perform budget transfers. Import Budget Amounts from Spreadsheet (XCC_IMPORT_BUDGET_FROM_SPREADSHEETS_PRIV) is a privilege that allows users to import budget amounts from a spreadsheet using ADFdi. Import Budget Amounts (XCC_IMPORT_BUDGET_PRIV) is a privilege that allows users to import budget amounts from a flat file using file-based data import. Budget Loading (XCC_BUDGET_LOADING_DUTY_PRIV) is a duty role that includes privileges related to importing budget amounts from various sources. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Process Budget Journals

• Question 102:

  In which two ways can your users customize the Springboards and Work Areas to suit their individual working styles? (Choose two.)

  A. Users have very little control their Springboards and Work Areas; they can only resize columns

  B. They can use Personalization to move and remove regions from those pages

  C. They can have the System Administration customize pages for them using Page Composer

  D. They can format each table by hiding and showing columns, moving columns, and resizing columns

  Correct Answer: BD

  your users can customize the Springboards and Work Areas to suit their individual working styles by using Personalization and formatting each table. Personalization allows users to move and remove regions from those pages, as well as add new regions or change the layout. Therefore, option B is correct. Formatting each table allows users to hide and show columns, move columns, and resize columns, as well as sort, filter, or group data. Therefore, option D is correct. Option A is incorrect because users have more control over their Springboards and Work Areas than just resizing columns. Option C is incorrect because users don't need to have the System Administration customize pages for them using Page Composer. They can use Personalization instead.

• Question 103:

  Which tool can you use to create a Financial Income Statement?

  A. One View Reporting

  B. PS/nVision

  C. Account Inspector

  D. Rapid Implementation Enterprise Structures setup

  Correct Answer: C

  Account Inspector is a tool that allows you to create a Financial Income Statement using data from General Ledger Cloud. You can select an income statement account or an account group and view the account balance and its components, such as subledger details, journal lines, and supporting references. You can also drill down to the underlying transactions and subledger applications. You can customize the layout and appearance of the income statement and export it to Excel or PDF. One View Reporting is a tool that allows you to create reports using data from Oracle E-Business Suite applications, not Oracle Financials Cloud. PS/nVision is a tool that allows you to create reports using data from PeopleSoft applications, not Oracle Financials Cloud. Rapid Implementation Enterprise Structures setup is a tool that allows you to set up enterprise structures for Oracle Financials Cloud, not create financial statements. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Create Financial Reports 12

• Question 104:

  Your customer wants to use a clearing company to automatically balance intercompany entries.

  Which three statements are true regarding the use of a clearing company value? (Choose three.)

  A. You must map legal entities to balancing segment values in order to use a clearing company

  B. If you do not map legal entities to balancing segment values, then a clearing company can be applied to any journal within the ledger

  C. Clearing companies are not supported

  D. If you map legal entities to balancing segment values, then a clearing company can only be applied within a legal entity

  E. 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

  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.

• Question 105:

  Which two are valid Data Access Set types? (Choose two.)

  A. Full access

  B. Full Ledger

  C. Primary Balancing Segment Value

  D. Read and Write access

  E. Read Only access

  Correct Answer: AE

  The two valid Data Access Set types are Full access and Read Only access. A Data Access Set is a security feature that defines the access level that users have to ledger data, such as balances, budgets, or journals. A Data Access Set type is an attribute that determines the type of access that users have to ledger data within a Data Access Set. The two valid Data Access Set types are Full access and Read Only access. Full access allows users to view and enter data for ledger data within a Data Access Set. Read Only access allows users to view but not enter data for ledger data within a Data Access Set. Full Ledger is not a valid Data Access Set type, but an option that determines whether a Data Access Set grants access to all balancing segment values in a ledger or only specific balancing segment values. Primary Balancing Segment Value is not a valid Data Access Set type, but an attribute that identifies the legal entity or business unit for which financial statements are prepared and balanced. Read and Write access is not a valid Data Access Set type, but an alternative term for Full access. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Define Ledgers 12

• Question 106:

  All of your subsidiaries reside on the same application instance, but some of them require a different chart of accounts and/or accounting calendar and currency. There is no minority interest or partial ownerships. What is Oracle's recommended approach to performing consolidations?

  A. Translate balances to the corporate currency, create a chart of accounts mapping to the corporate chart of accounts, then transfer balances to the corporate consolidation ledger using the balance transfer program

  B. Translate balances to the corporate currency for ledgers not in the corporate currency, use General Ledger's Financial Reporting functionality to produce consolidated reports by balancing segment where each report represents a different subsidiary.

  C. Create separate ledgers for each subsidiary that shares the same chart of accounts, calendar, currency, and accounting method. Create a separate elimination ledger to enter intercompany eliminations. Then creates a ledger set across all ledgers and report on the ledger set.

  D. Use Oracle Hyperion Financial Management for this type of complex consolidation.

  Correct Answer: C

  The recommended approach to performing consolidations when all of your subsidiaries reside on the same application instance, but some of them require a different chart of accounts and/or accounting calendar and currency is to create separate ledgers for each subsidiary that shares the same chart of accounts, calendar, currency, and accounting method. Create a separate elimination ledger to enter intercompany eliminations. Then create a ledger set across all ledgers and report on the ledger set. This will allow you to maintain separate ledgers for each subsidiary with different reporting requirements and eliminate intercompany balances using the elimination ledger. The ledger set will enable you to report consolidated balances across all ledgers using General Ledger Cloud reporting tools. You do not need to translate balances to the corporate currency, create a chart of accounts mapping to the corporate chart of accounts, then transfer balances to the corporate consolidation ledger using the balance transfer program, as this is a complex and time-consuming process that involves multiple steps and data conversions. You do not need to translate balances to the corporate currency for ledgers not in the corporate currency, use General Ledger's Financial Reporting functionality to produce consolidated reports by balancing segment where each report represents a different subsidiary, as this is not a reliable or accurate way to perform consolidations and does not address different charts of accounts or calendars. You do not need to use Oracle Hyperion Financial Management for this type of consolidation, as this is an external application that requires additional integration and maintenance. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Consolidate Balances 12

• Question 107:

  You entered a journal and the client is asking for the following information:

  1.

  The current account balance

  2.

  What the future account balance will be if the journal is approved and posted

  How will you get this information?

  A. Query the account balance online

  B. Use Oracle Transactional Business Intelligence (OTBI) to query General Ledger balances

  C. View the Projected Balances region in the Create Journals page

  D. Run a Trial Balance before and after posting

  Correct Answer: C

  you can view the projected balances region in the create journals page to see the current account balance and what the future account balance will be if the journal is approved and posted. Therefore, option C is correct. Option A is incorrect because querying the account balance online will not show you the future account balance. Option B is incorrect because using Oracle Transactional Business Intelligence (OTBI) to query General Ledger balances will not show you the future account balance. Option D is incorrect because running a trial balance before and after posting will not show you the current account balance.

• Question 108:

  Your customer has a large number of legal entities. The legal entity values are defined in the company segment which represents the primary balancing segment. They want to easily create eliminating entries for their intercompany activity. What would you recommend?

  A. Define an intercompany segment in the chart of accounts. The Intercompany module and the Intercompany balancing feature in general ledger and subledger accounting will automatically populate the intercompany segment which the balancing segment value of the legal entity with which you are trading

  B. There is no need to define an intercompany segment, the Intercompany module keeps track of the trading partners for you based on the intercompany rules to define

  C. Define an intercompany segment and qualify it as the second balancing segment to make sure all entries are balanced for the primary balancing segment and intercompany segment

  D. There is no need to define an intercompany segment. You can track the intercompany trading partner using distinct intercompany receivable/payable natural accounts to identify the trading partner

  Correct Answer: A

  According to Oracle documentation2, Oracle's recommended approach to easily create eliminating entries for intercompany activity when you have a large number of legal entities is to define an intercompany segment in the chart of accounts. The Intercompany module and the Intercompany balancing feature in general ledger and subledger accounting will automatically populate the intercompany segment with the balancing segment value of the legal entity with which you are trading. Therefore, option A is correct. Option B is incorrect because you do need to define an intercompany segment to easily create eliminating entries for intercompany activity. Option C is incorrect because you don't need to qualify the intercompany segment as the second balancing segment. You only need to qualify it as an intercompany segment. Option D is incorrect because you don't want to track the intercompany trading partner using distinct intercompany receivable/ payable natural accounts. You want to use a separate intercompany segment for that purpose.

• Question 109:

  What are the two possible reasons for encumbrance created on the purchase order to go back to the budget or funds availability? (Choose two.)

  A. The purchase order is canceled or finally closed or rejected without performing any receipt or invoice

  B. When the purchase order is set to accrue at receipt and partially received, then canceled or finally closed, encumbrance goes back to the extent of the unreceived amount

  C. The requisition reserved successfully undergoes amendment and is rejected in the reapproval

  D. When the requisition is set to accrue at period end and partially billed and then canceled or finally closed, encumbrance goes back to the budget to the extent of the unbilled amount

  Correct Answer: AB

  "Encumbrance accounting is a method of accounting for funds that have been reserved for specific purposes. Encumbrance accounting enables you to track funds that have been committed but not yet spent." When a purchase order is created and reserved successfully, an encumbrance is created on the purchase order and reduces the funds availability. The encumbrance created on the purchase order can go back to the budget or funds

• Question 110:

  You are using account hierarchies for reporting and allocations. Which two statements are true about these types of hierarchies? (Choose two.)

  A. You can have only one version of a hierarchy published to the Essbase cube at any time.

  B. Hierarchies for reporting and allocations do not have to be published to Essbase cubes.

  C. Hierarchies for reporting and allocations have to be published to Essbase cubes.

  D. Child values in these hierarchies can belong to only one parent.

  Correct Answer: AD

  According to the Oracle documentation34, account hierarchies are defined in Oracle Fusion applications using tree functionality. Each account hierarchy is defined as a tree with one or more versions. You can have only one version of a hierarchy published to the Essbase cube at any time (option A). Child values in these hierarchies can belong to only one parent (option D). Option B is incorrect because hierarchies for reporting and allocations must be published to Essbase cubes5. Option C is incorrect because it contradicts option B.