Enterprise Systems

(T/F): The fulfillment process (sell) consists of all the steps involved in selling and delivering the products to the organization's customers.

True

(T/F): The general ledger is used to record the financial impacts of business process steps.

True

(T/F): The material master includes a large amount of data because it is used in numerous processes.

True

(T/F): The most common organizational structure within modern organizations is the functional structure.

True

(T/F): The procurement process includes all of the tasks involved in acquiring needed materials.

True

(T/F): The purpose of material planning is to match supply with demand.

True

(T/F): Transaction data reflect the consequences of executing process steps.

True

(T/F): Within accounts receivable accounting, when a payment is made the bank account is debited and the appropriate customer account is credited.

True

(T/F): Within the production process, the issuing of raw materials takes place in the warehouse.

True

(T/F): Work lists identify tasks that are scheduled to be completed in a process.

True

Which type of asset has a non-physical form? A) intangible asset B) master asset C) informal asset D) tangible asset E) none of the above

A) intangible asset

(T/F): A building can house only a single plant.

False

(T/F): A company code is the highest organizational level in SAP ERP.

False

(T/F): A financial accounting document is a general ledger account that consolidates data from a group of sub-ledger accounts, such as customers and vendors.

False

(T/F): A list of accounts that can be included in a general ledger is called master data.

False

(T/F): A reconciliation account records the impact of a transaction step on financial accounting.

False

(T/F): Accounts payable accounting is not associated with the procurement process.

False

(T/F): Accounts payable is used to track money owed by customers.

False

(T/F): Accounts receivable is used to track money that is owed to vendors.

False

(T/F): An increase in an asset account or an expense account results in a credit posting.

False

(T/F): An increase in revenue or liability results in a debit posting.

False

(T/F): Assets are monies the company earns by selling its products and services.

False

(T/F): Business areas are external departments of an enterprise that are used to define areas of responsibility or to meet the internal requirements of a division.

False

(T/F): Expenses are what the company owes to others, including money owed to vendors and loans from financial institutions.

False

(T/F): Intangible assets are physical items such as buildings, machinery, and computers.

False

(T/F): Liabilities are what the company owns, such as cash, land, and buildings.

False

(T/F): Management accounting, or controlling (CO), is intended primarily for audiences outside the organization.

False

(T/F): Tangible assets are non-physical items such as trademarks and patents.

False

(T/F): The financial accounting process focuses on internal reporting to manage costs and revenues.

False

(T/F): The four most common material types are raw materials, semifinished goods, finished goods, and exported goods.

False

(T/F): The online transaction processing (OLTP) system is designed to capture and store detailed organizational data.

False

(T/F): Trading goods (HAWA) are resold to customers after they have been modified by the company.

False

The highest organizational level in SAP ERP is the A) Client B) Vendor C) Plant D) Material Master E) None of the above

A) Client

Which term refers to business processes that are not executed by a single group or function? A) Cross-Functional B) Organizational Structure C) Enterprise Systems D) Silo Effect E) Functional Structure

A) Cross-Functional

Which of the following records the impact of a transaction step on financial accounting? A) financial accounting document B) subsidiary ledger C) parallel accounting document D) sub-ledger E) none of the above

A) financial accounting document

What function does the warehouse perform in the fulfillment process? A) Prepares and sends the shipment to the customer B) Notifies the customer C) Tracks the order D) Communicates data related to the order to other parts of the organization E) None of the above

A) Prepares and sends the shipment to the customer

What steps are involved in the accounting portion of the procurement process? A) Receiving the invoice and sending payment B) Receiving the materials and the invoice C) Creating the purchase requisition and receiving the materials D) Creating and sending the purchase order E) Creating the purchase requisition and sending payment

A) Receiving the invoice and sending payment

What is the first step of the production process? A) Request Production B) Authorize Production C) Issue Raw Materials D) Create Product E) Receive Finished Goods

A) Request Production

_____ reflect(s) the consequences of executing process steps A) Transaction data B) Project management C) Organizational data D) Material groups E) None of the above

A) Transaction data

Which of the following is used to integrate several client-server applications and create enterprise mash-ups, or composite applications? A) Web services B) Enterprise system C) Account system D) Management system E) All of the above

A) Web services

Which of the following is a key process in financial accounting? A) accounts receivable accounting B) credit management C) income verification D) sales order processing E) all of the above

A) accounts receivable accounting

Which term represents what a company owns, such as cash, inventory of materials, and buildings? A) assets B) equity C) revenues D) liabilities E) none of the above

A) assets

_____ is concerned with recording the financial impacts of business processes as they are executed. A) financial accounting (FI) B) management accounting C) controlling (CO) D) bank ledger accounting E) none of the above

A) financial accounting (FI)

Which of the following is used to implement multiple ledgers and use each ledger for different purposes? A) parallel accounting B) sub-ledger C) subsidiary ledger D) financial accounting document E) none of the above

A) parallel accounting

Which term is a general ledger account that consolidates data from a group of related sub-ledger accounts? A) reconciliation account B) subsidiary ledger C) line item display D) sub-ledger E) none of the above

A) reconciliation account

Which of the following master data is used in numerous processes? A) Customer Master B) Material Master C) Company Code D) Plant E) Vendor Master

B) Material Master

Which process uses historical data and sales forecasts to plan which materials will be procured and produced? A) Production Process B) Material Planning C) Lifecycle Data Management D) Procurement Process E) Fulfillment Process

B) Material Planning

Which of the following terms refers to materials with similar characteristics? A) Material number B) Material group C) Material master D) Transaction data E) None of the above

B) Material group

Which of the following is(are) used to represent the structure of an enterprise? A) Lifecycle Data Management B) Organizational Data C) Project Management D) Plant E) Client

B) Organizational Data

What is the final step of the procurement process? A) Invoice B) Payment C) Purchase Order D) Purchase Requisition E) None of the above

B) Payment

Which of the following is used to report data needed to meet legal and regulatory requirements? A) equity B) financial statement C) tangible document D) assets E) none of the above

B) financial statement

Which term represents what a company owes to others, including money owed to vendors and loans from financial institutions? A) revenues B) liabilities C) assets D) equity E) none of the above

B) liabilities

Which term represents the monies a company earns by selling its products and services? A) liabilities B) revenue C) equity D) assets E) expenses

B) revenue

Which term refers to the technical structure of the software, how users interact with the software, and how the software is physically managed on computer hardware? A) Service-Oriented Architecture B) Enterprise Resource Planning C) Architecture D) Supply Chain Management E) None of the above

C) Architecture

Which term represents a set of tasks or activities that produce desired outcomes? A) Outcome B) Trigger C) Business Process D) Enterprise Resource Planning E) None of the above

C) Business Process

Materials that are created by the production process from other materials are referred to as _____ A) Semi-finished goods (HALB) B) Raw materials C) Finished goods (FERT) D) Trading goods (HAWA) E) None of the above

C) Finished goods (FERT)

Which of the following is concerned with the storage and movement of materials? A) Business Planning B) Silo Effect C) Inventory and warehouse management (IWM) D) Material Planning E) Project Management

C) Inventory and warehouse management (IWM)

Materials that are purchased from an external source (a vendor) and used in the production process are known as _____ A) Finished goods (FERT) B) Semi-finished goods (HALB) C) Raw materials D) Trading goods (HAWA) E) None of the above

C) Raw materials

Which term relates to the technical capabilities that allow systems to connect with one another through standardized interfaces called Web services? A) Architecture B) Enterprise Resource Planning C) Service-Oriented Architecture D) Supply Chain Management E) None of the above

C) Service-Oriented Architecture

Which term refers to a system in which workers complete their tasks in separate departments without regard to the consequences for the other components of the process? A) Enterprise Systems B) Functional Structure C) Silo Effect D) ERP Effect E) Cross-Functional

C) Silo Effect

What type of materials is purchased from a vendor? A) Semi-finished goods (HALB) B) Material types C) Trading goods D) Finished goods (FERT) E) None of the above

C) Trading goods

Which process is concerned with recording data associated with bank statements? A) general ledger accounting B) fixed asset accounting C) bank ledger accounting D) accounts receivable accounting E) none of the above

C) bank ledger accounting

Which term refers to an ordered listing of accounts that comprise a company's general ledger? A) general ledger B) balance sheet C) chart of accounts (COA) D) bank ledger E) none of the above

C) chart of accounts (COA)

Which of the following best describes the operative chart of accounts? A) used to enable companies to meet special country-specific reporting requirements B) contains accounts that are used by multiple companies to consolidate their financial reporting C) contains the operational accounts that are used to record the financial impact of an organization's day-to-day transactions D) contains only accounts receivable transaction E) contains only accounts payable transactions

C) contains the operational accounts that are used to record the financial impact of an organization's day-to-day transactions

Which term represents the costs associated with creating and selling products and services? A) liabilities B) assets C) expenses D) equity E) none of the above

C) expenses

Which type of asset has a physical form? A) master asset B) informal asset C) tangible asset D) intangible asset E) none of the above

C) tangible asset

Which of the following statements about business processes is true? A) They are initiated by some type of trigger B) They involve multiple steps C) They are executed across multiple functions D) All of the above E) None of the above

D) All of the above

Which system connects a company's ERP system to those of its customers? A) Product Lifecycle Management (PLM) B) Enterprise Solution C) Application Platform D) Customer Relationship Management (CRM) E) None of the above

D) Customer Relationship Management (CRM)

Which system supports business processes end to end? A) Document System B) Management System C) Account System D) Enterprise System E) Functional Structure

D) Enterprise System

Which process tracks the financial impact of process steps with the goal of meeting legal reporting requirements? A) Project Management B) Human Capital Management (HCM) C) Management Accounting or Controlling (CO) D) Financial Accounting E) None of the above

D) Financial Accounting

_____ is concerned with matching the demand for materials in the organization with the supply. A) Business Planning B) The Silo Effect C) Project Management D) Material Planning E) None of the above

D) Material Planning

How many company codes can a plant belong to? A) Three B) Two C) Any Number D) One

D) One

Which of the following terms refers to an organizational element that performs multiple functions and is relevant to several processes? A) Lifecycle Data Management B) Fulfillment C) Warehouse D) Plant E) Procurement

D) Plant

Which of the following systems helps companies administer the processes of research, design, and product management? A) Enterprise Solution B) Application Platform C) Customer Relationship Management (CRM) D) Product Lifecycle Management (PLM) E) None of the above

D) Product Lifecycle Management (PLM)

Which process involves the actual creation of the products? A) Lifecycle Data Management B) Fulfillment Process C) Material Planning D) Production Process E) Procurement Process

D) Production Process

Which program is the "operating system" for an entire company's business processes? A) SAP Prolific B) Linux C) Microsoft Vista D) SAP NetWeaver E) None of the above

D) SAP NetWeaver

Which process is used to manage money owed by customers for goods and services purchased from the company? A) bank ledger accounting B) general ledger accounting C) fixed asset accounting D) accounts receivable accounting E) all of the above

D) accounts receivable accounting

Financial statements can be generated from which of the following? A) operative COA B) country-specific COA C) neither operative nor country-specific COAs D) both operative and country-specific COAs

D) both operative and country-specific COAs

_____ are internal divisions of an enterprise that are used to define areas of responsibility or to meet the external reporting requirements of an enterprise segment. A) sub-ledgers B) depreciation areas C) cost centers D) business areas E) none of the above

D) business areas

Which term refers to all of the activities involved in buying or acquiring the materials used by the organization, such as raw materials needed to make products? A) Fulfillment Process B) Lifecycle Data Management C) Material Planning D) Production Process E) Procurement Process

E) Procurement Process

(T/F): A chart of accounts (COA) is an ordered listing of accounts that comprise a company's general ledger.

True

(T/F): A plant can be a factory, a warehouse, a regional distribution center, or a service center.

True

(T/F): A segment is a division of an enterprise for which management monitors performance separately from other segments.

True

(T/F): Account currency determines the currency in which all the transactions are recorded.

True

(T/F): Accounting processes are broadly divided into two main categories: financial accounting and management accounting.

True

(T/F): Accounts payable accounting is concerned with vendors.

True

(T/F): Accounts receivable accounting is concerned with customers.

True

(T/F): Asset accounting is concerned with tracking financial data related to assets such as machinery and cars.

True

(T/F): Common reports in financial accounting include income statement, profit and loss, and balance sheet.

True

(T/F): Financial accounting (Fl) is concerned with recording the financial impacts of business processes as they are executed.

True

(T/F): Financial accounting is affected any time money either leaves or comes into the company.

True

(T/F): Financial statements can be generated for different organizational levels including one or more company codes and business areas.

True

(T/F): Management accounting helps an organization track costs and revenues to assess its profitability.

True

(T/F): Materials are categorized into different material types based on the way they are used in the firm's operations.

True

(T/F): Materials encompass all the products, components, and parts that are used in an organization.

True

(T/F): Organizational data are used to represent the structure of an enterprise.

True

(T/F): Parallel accounting consists of implementing multiple ledgers and using each ledger for different purposes.

True

(T/F): Raw materials (ROH) are purchased from an external source - a vendor - and used in the production process.

True

(T/F): Storage locations are places within a plant where materials are kept until they are needed.

True

(T/F): The balance sheet is a snapshot of the organization at a point in time.

True