Module 1 Quiz

What are the 3 main components of the Balance sheet?

• Interests, Payables and Assets

• Liabilities, Assets and Handled debts

• Assets, Liabilities and Owner's equity

• Assets and Liabilities

What does the I&E (Income and Expense) show us?

• Cash flow, Interest, Assets, Liability and Equity

• Revenue, Cost, Gross profit, Expenses and Income

• Investment activities, Cash flow, Sales and Financing

• None of the Above

What accounting report helps to build a forecast and identify cash needs, as well as locating cash drains and issues in budgeting process?

• Cash flow statement

• Investing activities statement

• Cash drains statement
  

• All of the above

Which are some of the Feeder Systems in IBM?

• CFTS, Labor@IBM, SAP and CIAS

• WWERS, FDW and GLUI

• AIW, Cognos and LERU

• All of the above

What is the Division code used for?

• It's 2-digit code which segregates the Accounting data by Division

• All of the above

• It's a 3-digit code to determine the country in which IBM operates

• It segregates the different legal entity or ‘Book’ within a country

Major codes 3XX, 4XX, and 8XX, are examples of...

• Balance Sheet Majors

• Income & Expense Majors

• Sales, General & Admin (SG&A) Expenses Majors

• Cost Major

When can a Revenue accrual be performed?

• Where billing occurs but goods have not been delivered or services rendered

• Where Revenue should be accrued for vendor goods and services received when there is no vendor invoice

• When good have been delivered and services rendered, but invoice has not been raised

• All of the above

What is the difference between Intracompany transfers and Intercompany transfers?

• They both are the same proces but depends on the month as quarter-end months will only allow Intracompany transfers to be performed

• Intracompany transfers funds between IBM companies located across countries and Intercompany transfers funds from one ledger to another ledger within a country

• All of the above

• Intercompany transfers funds between IBM companies located across countries and Intracompany transfers funds from one ledger to another ledger within a country

How can a Cost Deferral benefit the contract?

• When the Cost received will put the GP for the current month in the negative and the Deferral will allow to present better results

• When a Cost qualifies to be deferred for payments made in advance to vendors, the contract received full allocation for a 12 month service from a vendor and the contract end date allows for monthly partial allocations

• None of the above

• When the forecast did not include a Cost and the PM would prefer to receive the allocation until the next quarter

What is the definition of an Accrual?

• Accrual will allow to borrow a debit/credit from the Balance sheet to cover for missing Ledger items when it couldn't be allocated within the current month

• All of the above

• Accruals will allow for Revenue to de increased giving you a better GP % for the rest of the contract without processing billing

• Accruals will allow to defer cost when an invoice from a vendor was received and was not expected in the forecast