ACADEMY: FINANCIAL ACCOUNTING

FI PAPER – 14

1. Benefits of integration are

a. processes can be done concurrently, rather than consecutively. This reduces
process time
b. data moves through internet platform and access becomes faster
c. eliminates duplicate entries
d. single entry accounting becomes easier

2. R/3is called so because

a. it requires three servers
b. it integrates three basic modules, viz., FI, logistics and HR
c. it has three tier architecture representing database, application and front end
presentation
d. it has three tier architecture representing GUI, BAPI and RCF

3. application modules supported by R/3 include

a. FI, CO, TR, SD,MM, PP, PM,QM,HR,PS,WF,IS
b. FI,CO,TR,SD,MM,PP,PM,QM,HR,PS,WF,IS,EC
c. FI,CO,TR,SD,MM,PP,PM,QM,HR,PS,WF,IS,EC,CCPC,CPPA
d. FI,CO,TR,SD,MM,PP,PM,QM,HR

4. In standard business process of a manufacturing organization a sales order would

trigger in another application
a. MPS
b. MRP
c. Purchase requisition
d. Goods delivery

5. Main components of FI are

a. GL,AR,AA,LC,TR
b. GL,AR,AP,AA,TR
c. GL,AR,AP,AA,LC,TR,CM
d. GL,AR,AP,AA,LC,TR,TM

6. Main components of CO are

a. COOM,COPC,COPA,ECPCA,COTM
b. COOM,COPC,COPA,ECPCA,COCCA
c. COOM,COPC,COPA
d. COOM,COPC,COPA,ECPCA

7. The sequence of business processes (related to raw material for production) in MM

can be described are
a. PR-MRP-GR,INVOICE
b. PR-PO-GR-INVOICE VERIFICATION
c. PR-PO-GR-INVOICE VERIFICATION-VENDOR PAYMENT
d. PR-PO-GR-INVOICE VERIFICATION-RECEIPT OF DISCOUNT FROM VENDOR
8. It is a must to create group company before any transaction processing
a. completely true
b. partially true
c. completely false
d. partially false

9. it is a must to create company code before any transaction processing

a. completely true

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b. partially true
c. completely false
d. partially false

10. business area is a legal entity for which you need a balance sheet
a. completely true
b. partially true
c. completely false
d. partially false

11. client is the highest level organization

a. completely true
b. partially true
c. completely false
d. partially false

12. many company codes can be attached to one plant

a. completely true
b. partially true
c. completely false
d. partially false

13. many company codes can be assigned to one controlling area

a. completely true
b. partially true
c. completely false
d. partially false

14. operating concern can encompass several controlling areas

a. completely true
b. partially true
c. completely false
d. partially false

15. credit control area is a concept in CO

a. completely true
b. partially true
c. completely false
d. partially false

16. master data is created with the help of IMG

a. completely true
b. partially true
c. completely false
d. partially false
17. transaction data is core information that is shared across applications
a. completely true
b. partially true
c. completely false
d. partially false

18. the user specific defaults are possible if setting is done in

a. user profile
b. company code parameters
c. session managers

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d. terminal

19. customized report trees are created through

a. transaction menu of information system
b. master creation of reports
c. IMG
d. Standard report functionality

20. Variant creation helps in

a. calculating variance between actual and standard
b. processing repetitive transactions
c. to coy repetitive field values in master creation
d. to be a standardized selection criteria for repetitive use required to run
program

21. credit control area may consist of one or more company codes
a. completely true
b. partially true
c. completely false
d. partially false

22. credit control area is used

a. by the SD and AR components to provide integrated credit management
b. by FI/AP to prove credit worthiness to vendors
c. independently by FI to monitor customer credit
d. independently by SD to monitor customer credit

23. a company code can be assigned with

a. three chart of accounts
b. two charts of accounts
c. only one chart of account
d. a chart of account called as operating chart of account

24. association between numbers from group chart of account and/or

country/alternate chart of account can be established in
a. company code global parameters
b. master data of ledger account from operating chart of account
c. group company details
d. country details

25. account groups which are assigned in account master creation helps
a. to determine which fields should be suppressed, required or optional while
processing transaction
b. to determine which fields should be suppressed, required or optional while
creating master in company code area
c. to determine which fields should be suppressed, required or optional while
processing transactions and master both
d. in grouping the accounts with specific logic and assign specific number
interval
26. there are two areas-chart of account and company code-in which G/L account
master has to b e created because
a. data can be distributed and easy to process
b. the same chart of account can be assigned to several company codes
c. the company specific features can be maintained in company code areas

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d. creation of G/L can be done in two stages

27. house banks are banks
a. which are used by the company code in which they are created
b. which are used by customers/vendors
c. located in the same building where company is located
d. which are nationalized

28. primary cost element is related to

a. G/L account code in one to one relationship
b. G/L account code in one to many relationship
c. Several secondary cost elements to group them
d. Internal order

29. It is a must to assign a standard hierarchy in cost center master

a. completely true
b. partially true
c. completely false
d. partially false

30. statistical order permits

a. settlement to cost center
b. application of overhead to them
c. evaluation of costs which cannot be itemized in detail cost element or cost
center accounting
d. costing of product

31. for every transaction, system generates at least

a. 4 documents
b. 3 documents
c. 2 documents
d. 1 document

32. transactions which have a financial impact generate along with other documents
a. material document
b. SD document
c. System document
d. Accounting document

33. Purchase order creation is an example of transaction

a. which also triggers accounting document
b. which does not create any accounting document
c. which creates document in SD
d. which triggers document in PP
34. document has the following sections
a. title and details
b. open item and line items
c. header and line items
d. coding block and line items

35. document type is assigned in the line item section of document

a. true
b. false

36. document type allows more than one account types while processing the
particular document type

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a. true
b. false

37. number range id is assigned in

a. account type
b. document type
c. document header
d. document line item

38. following are the account types

a. A,D,K,M,S
b. A,D,K,M,S,B,S
c. A,D,K,M,S,T
d. A,D,K,M,S,P,L

39. Number range can be defined as

a. only internally system generated
b. only externally assigned by user
c. either externally or internally
d. both externally and internally at the same time

40. posting keys determine

a. account groups to which account numbers belong
b. debit/credit, account type and field status of the transaction
c. debit/credit, account type, account group and field status of the transaction
d. document type, account type and field status of the transaction

41. the relationship between calendar months and posting period is defined in the
properties of
a. posting period variant
b. field status variant
c. fiscal year variant
d. global parameters of company code

42. only one company code can be attached to a posting period variant
a. true
b. false

43 fiscal year can have

a. maximum 12 regular posting periods and 4 special periods
b. any number of posting periods
c. 16 regular periods
d. 16 special periods

44 account type essentially controls

a. account group which can be assigned to the account code
b. which account-G/L, customer, vendor, material, or asset can be used in a line
item of transaction posting
c. tolerance level of the accounts involved
d. document type which can be used

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45 account group in the context of G/L account determines status of fields in

a. transaction
b. chart of account segment of master data
c. company code segment of master data
d. none of the above

46 field status variant and posting key both determine field status in
a. chart of account segment of master data
b. company code segment of master data
c. document type
d. none of the above

47 negative postings cause transaction figures of the account

a. changed
b. unchanged
c. double
d. none of the above

48 fornegative posting, negative posting indicator needs to be checked

a. only in document type
b. only in company code global parameters and reason code properties
c. only in document type, company code global parameters and reason code
parameters
d. none of the above

49 following and the FI functionality offered for speedy posting

a. posting with reference, recurring entries, account assignment models, G/L fast
entry screens
b. only G/L fast entry screens
c. only recurring entries
d. none of the above

50terms of payment can be assigned to

a. G/L master
b. Customer or vendor master
c. Transaction processing for customer/vendor
d. None of the above

51 Base line date is

a. a date on which payment becomes due
b. from which due date is calculated depending on the settings in payment terms
c. a base date after which discount lapses
d. none of the above

52 due date and cash discounts are dependent on

a. settings in company code
b. credit management settings
c. payment term
d. payment method
53 currency assigned in company code master is
a. transaction currency
b. group currency
c. hard currency

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d. local currency

54 validations are used

a. to substitute values in fields
b. to support data entry
c. to validate the data being entered is meeting certain criteria when certain
prerequisites are met
d. none of the above

55 parking of document is a functionality

a. which can be used to complete and post subsequently the documents which
are incomplete
b. to hold the document for the new session
c. to process documents faster
d. none of the above

56 dunning process is used

a. to generate payments
b. to remind customer/vendor of account arrears
c. to remit the payments
d. none of the above

57 opening and closing of posting period is done

a. customization of fiscal year
b. customization related to opening and closing of posting period
c. definition of posting period variant
d. none of the above

58 updating of reconciliation account

a. happens on a daily basis
b. is real time update
c. happens after the end of the posting period
d. none of the above

59 customer and vendor master can b e maintained

a. only in FI
b. only in SD/MM
c. centrally as well as in respective functional areas
d. none of the above
60customer master is divided into
a. two sections-company code and sales area
b. three sections-general data, company code and sales organization
c. four sections-general data, company code, salas organization and production
d. none of the above

61 function of tolerance group is

a. is to set tolerance level for foreign exchange
b. is to define user groups with different amount limits for documents and line
items
c. grouping tolerance levels of specific nature
d. none of the above

62 posting keys are defined at

a. business area level
b. company code level

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c. client level
d. none of the above

63 every company code must have its own document type

a. true
b. false

64 the standard posting keys used for G/L posting are

a. 40, 50
b. 19, 20and 40
c. 50, 39
d. none of the above

65 in case of cross company code transactions

a. one has to post two documents individually
b. posts a document in one company and system generates another document
in concerned company with common link of cross company code transaction
number
c. system links documents based on user given number in cross company code
transaction field
d. none of the above

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KEY

1. A,C
2. C
3. D
4. B
5. C
6. A
7. B
8. C
9. A
10. C
11. A
12. C
13. A
14. A
15. ..
16. A
17. C
18. A
19. ..
20. B
21. A
22. A
23. A,B,C,D
24. B
25. B,D
26. A,B,D
27. A
28. A
29. A
30. ..
31. D
32. D
33. B,D
34. C
35. B
36. A
37. B
38. A
39. C
40. B
41. A,C
42. B
43. A
44. B
45. C
46. C
47. A
48. C
49. A
50. B,C
51. B
52. C

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FI PAPER – 14

53. D
54. C
55. A
56. B
57. B
58. B
59. C
60. B
61. B, C
62. C
63. B
64. A
65. B

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