Financial Accounting Quiz

Which element is not a part of the typical company code data in general ledger accounts?

• Tax-related data

• Field status groups

• Line item display

• Reconciliation account data

• None of the above

What are the most common transaction types that occur during the life of an asset?

• Production

• Allocation

• Acquisition

• Depreciation

• Retirement

All of the following are transaction types that occur during the life of an asset except ___________ .

• Acquisition

• Depreciation

• Allocation

• Retirement

From which of the following can financial statements be generated?

• Operative chart of accounts

• Country-specific chart of accounts

• Revenue accounts

• Assets

• Liability accounts

Financial statements can be generated for different organizational levels including one or more company codes and business areas.

• True

• False

Which of the following is a key process in financial accounting?

• Sales order processing

• Accounts receivable accounting

• Credit management

• Income verification

• All of the above

Which term represents the monies a company earns by selling its products and services?

• Liabilities

• Assets

• Expenses

• Revenue

• Equity

Which of the following records the impact of a transaction step on financial accounting?

• Financial accounting document

• Parallel accounting document

• Sub-ledger

• Subsidiary ledger

• None of the above

Accounting processes are broadly divided into two main categories: financial accounting and management accounting.

• True

• False

Which of the following statements concerning the leading ledger are true?

• It is a type of sub-ledger

• Global accounting principles are consolidated into it

• Having a leading ledger is optional

• All transaction data are posted to it