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NEW QUESTION 37
You operate in a country whose unstable currency makes it unsuitable for managing your day-to-day business. As a consequence, you need to manage your business in a more stable currency while retaining the ability to report in the unstable local currency. What would be your recommendation when defining ledgers?

• A. Run Revaluation to translate into Statistical Currency
• B. Run Revaluation as often as you need to the more stable currency and report on the more stable currency's balances
• C. Use Journal-Level or Subledger-Level Reporting Currencies denominated in the more stable currency
• D. Create a secondary ledger that uses a different chart of accounts that is denominated in the more stable currency

Answer: C

NEW QUESTION 38
You are setting up Close Monitor, which compromises a ledger set hierarchy definition.
Which two components of the enterprise structure should the ledgers in the ledger set share? (Choose two.)

• A. Chart of Accounts, Currency, Accounting Calendar, and Subledger Accounting Method
• B. Chart of Accounts and Business Units
• C. Legal Entities, Business Units, and Chart of Accounts
• D. Chart of Accounts
• E. Accounting Calendar

Answer: D,E

NEW QUESTION 39
Your customer has enabled budgetary control for purchase orders. They have a purchase order for $1,000 USD which is fully reserved. An invoice for $600 is entered and matched to the purchase order, and the purchase order is closed for further invoicing.
What happens to the remaining $400 USD?

• A. Only obligation type will have $400 USD funds available
• B. $400 USD will be expired and not available for use
• C. $400 USD will be added back to available funds
• D. Manual encumbrance journal needs to be entered in General Ledger to release the budget amount of $400 USD
• E. Invoice type will have less funds available by $400 USD

Answer: B

NEW QUESTION 40
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. You can track the intercompany trading partner using distinct intercompany receivable/payable natural accounts to identify the trading partner
• C. 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
• D. 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

Answer: A

NEW QUESTION 41
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