MLT Knowledge Test AR Subledger Closing

What is write off?

• It's a bank statement processing

• It's a process of sending the letters to the customers

• It's a reduction of the recognized value of something

What is bad debt?

• It's moving one entry from one account to another

• It's an irreciverable receivable

• It's clearing of the identical positions

What is aging report?

• It's a record that shows unpaid invoice balances

• It's a report which is showing the duration for which invoices are outstanding

• It's a report which is showing open items to be investigated

Bank valuation is...

• a process of valuating all incoming and outgoing payments in a foreign currency to a national currency

• a process of checking balance on a customer's account

• a process of calculation the amount which needs to be moved from one account to another

Why bank valuation is performed?

• to evaluate GL accounts to the latest exchange rate

• to check if the company resulted positive or negative exchange rates

• to correct mistake

On which side positive exchange rate is booked (P&L)?

• Dt

• Ct

• both

Exchange rate differences are reposted into...

• Balance sheet account

• Profit and Loss account

What is the aim of reclassification?

• to answer on customer query to check and confirm balance

• to report properly in the BS open items on customer account in the right position

• is used for building a monetary reserve for open items

Reclassification posting should be reversed on 1st calendar day of next month

• TRUE

• FALSE