Worksheets3M's GFS
Total questions: 30
Worksheet time: 30mins
Which mentioned items had to meet the conditions in scope for lease agreements?
Lease term +1 month and contract value greater than $5k
Lease term +12 month and contract value greater than $8k
Lease term +12 month and contract value greater than $15k
If a customer bankrupted, recovering of receivables should be analyzed by?
Outside law company
Credit Risk Management and legal teams of the country
Big four company
Any differences over $100,000 of reconciliation between BPC and ERP/Legacy must be explained and resolved by?
3 months
By the following month
2 weeks
What is the definition of embedded lease under ASC 842?
Arrangement contained that vendor would sell assets used in traction on a specified date after end of contract date
A contract with a vendor that uses an asset as part of the provided item and the use of that asset meets the definition of a lease
Contract concerned assets purchased partially from vendor but still in use in process of contact by lessee
Unreconciled items (balances) of $50,001 - $1M, must be cleared and supported within?
1 month after closure
2 months after closure
3 months after closure
Who is responsible for providing necessary data and required supporting documentation for reconciling items?
All process streams
The Global Process Lead (GPL)
The Area Process Lead (APL)
General part of payments from customers must be applied to the correct customer account usually within?
2 days
7 days
14 days
What are examples of the assets most leased commonly at 3M?
Intangible assets, IT equipment, leases of inventory
Real estate, apartments for employees, contract manufacturing
Assets under construction, vehicles, IT service agreements
After how many days receivables which are considered as uncollectible should be write off?
90
140
180
What is reporting Currency?
Currency used to present The Statement of Financial Position
Currency used to present The Profit and Loss Statement
Currency used to present consolidated financial statements
Accruals must be posted when the probability of an event occurring as a percentage?
50%
70%
90%
Who is responsible for opening a new bank account?
Controlling
GL accountant
Regional Treasury Operations Team
Gains and losses on exchange transaction is recorded in the Profit and Loss Statement on which item?
Expenses
Cost of Goods Sold
Profit before tax
When accrual must be used in the following situations?
When goods/services are not received yet, but it will be very soon
When the documentation is reliable and authorized according to received good/service
When the value is not material
What are Non-Preferred Banks?
Banks that meet minimum credit rating criteria and ability to sweep cash balances to a preferred bank
Banks with low trust rating
Banks with limited number of services
What is functional currency?
The currency of the primary economic environment in which the entity operates
Foreign Currency in which entity did transaction
Currency in which most transactions are settled
For non-SAP related accruals who must authorize and confirm the accuracy of the accrual?
Country/regional or division finance manager
Chief Accountant
Any clerk from controlling team
What is cash pool?
Part of The Statement of Cash Flow
Intercompany loan
Cash management strategy to balance the accounts of a group’s subsidiaries
Cash pool is manages by?
Treasury Center
Entity’s controlling
Local management team of entity which transfers money
3M's global payment design requires all payments initiated by?
Bank portal
SAP
Special treasury software
What does it mean if we can see book overdrafts on account 305400 (cash reclass)?
Outstanding checks issued by 3M, which are not yet presented for clearance
Payments made by the bank which exceed 3M’s available balance
Both answers
What Global Value Netting Date is?
The day when intercompany loans might be run
The day of the month that the intercompany payments are settled
The day when funds are finally prepared before transferring to another subsidiary
What are the differences between checks and a draft?
There are no differences
For checks, once a check has been released, 3M has relinquished control over the use of that cash. For drafts, control over the cash is not relinquished until the draft is presented for payment
A draft is payable upon demand
Non-operating income examples are:
Construction Period Interest (CPI) - corporate interest expense that is reclassified to Capital Accounts and thus increases a capital asset account value and decreases the interest expense charge.
Currency exchange gains and losses
Long-lived asset impairment charges and charges due to the acceleration of depreciation
How often 3M required to reassess the appropriateness of the initial marketable debt security classification?
every month
once every 3 months
once every 6 months
Examples of Operating income and expense classifications are:
Core operating activities that arise out of normal daily business operations
Litigation settlements, acquisition-related costs, gains on the sale of assets
Both
What does it mean WIP and BOM?
Work in progress and bill of materials
Work in production and bill of materials
Work in progress and bill of minerals
Whom for questions regarding the classification of non-operating income and expense items we should contact?
Our manager
Local finance
Global Financial Accounting Center – Financial Policy Compliance
The supplying location takes the cost of the write off if the scrap is caused by the manufacturing process and the value of the scrap is greater than:
$50,000
$500,000
$5000
Procedure of Production Reporting Global Financial applies to product produced at:
3M locations
Non-3M locations (contract manufacturers)
3M locations & Non-3M locations (contract manufacturers)
