Revenue Exam Zuora

Identify the prerequisite for the conversion waterfall process that ensures that Zuora Revenue does not perform any calculations on the incoming data. 1. Assigning Conversion Waterfall POB template 2. Assigning SSP Optimizer 3. Assigning Cost Stratification 4. Assigning VC Insight

1. Assigning Conversion Waterfall POB template

What are the different ways in which a business can account for modifications as per ASC-606 guidelines'? Select all that apply. 1. Create a separate contract based on the modification 2. Terminate the existing contract and create a new contract for the modification 3. Include amendments to the contract periodically 4. Add to the existing contract modification 5. Suspend the contract with immediate notice to the customer

1. Create a separate contract based on the modification 2. Terminate the existing contract and create a new contract for the modification Add to the existing contract modification

Identify the ways of adding a forecast start date when a forecast template is based on system calculations. Select all that apply. 1. Mention the date in the Forecast Date Hierarchy column in the template using Forecast Date Hierarchy 2. Specify an adjustment method 3. Mention the forecast start date in the transaction upload file to define how the forecasted amount is to be scheduled 4. Specify a ratable method as in the POB template

1. Mention the date in the Forecast Date Hierarchy column in the template using Forecast Date Hierarchy 3. Mention the forecast start date in the transaction upload file

What information is displayed in the Contract Modification tab of a revenue contract when viewed in Workbench?

A list of all the modifications applied to a revenue contract

Which of the following is true regarding contract modification? O Some changes in a contract only need to be approved by the business O There is a limit to the number of times that a contract can be amended O Any change in the scope of a contract should be approved by both the customer and the business O Price adjustments are not allowed in contract modification

Any change in the scope of a contract should be approved by both the customer and the business

Reports that deal with corporate governance and financial disclosure are:

Audit Trail Report and Approvals Report

Identify the ways of releasing holds in Zuora Revenue. Select all that apply. Based on events Manually Based on Grouping Rules

Based on events Manually

At which transaction-level would the revenue be released when the release event is Upon Booking?

Based on sales order

Which of the following is true about retrospective allocation treatment in Zuora Revenue?

Both allocatable and allocated amounts are re-calculated in Zuora Revenue

Identify the event defined in Zuora Revenue to release revenue when a certain proportion of a predefined budget has been utilized? Revenue event Budgeted cost event Release hold Budgeted hours event Cost event Budgeted revenue event

Budgeted cost event

Identify the profile that should be enabled before uploading MJEs to validate the account segments for journal entries from the upstream system (Oracle).

CC_ID_VALIDATION

How is the carve amount scheduled in Zuora Revenue?

Carve amount is calculated as a percentage of the revenue schedules.

Allocation treatment for contract changes that occur during the revision timelines are triggered by:

Contract modification rules

A legally binding agreement that defines and governs the enforceable rights and obligations between parties is called a ___________________

Contract with valid agreement

MedSystems wants to define variable consideration values to process the commissions they spent for procuring a contract. Identify the ways in which they can process the values.

Create a variable consideration template and upload the values in a file

Which of the following should be done first to perform residual allocation on the RSSP lines?

Create an RSSP batch based on the template to upload the RSSP stratification file

Which one of the following features helps to view data in the backend without logging into the system database? Relational Database Service Data Query Data Mining Data Manipulation Language

Data Query

What is the purpose of the TRANSFER BATCH_CRITERIA lookup in Zuora Revenue?

Defines the fields selected for filter criteria when creating a transfer batch

Which of the following is not an option to manage SSP in Zuora Revenue?

Defining SSP rule

Identify the different VC rule types in Zuora Revenue. Estimates Actuals Usage-based Partial

Estimates Actuals

An RC Grouping template includes one grouping rule. Select True or False.

FALSE

Assigning a POB template to a transaction releases revenue. Select True or False.

FALSE

Contract modifications occur when changes are made to POBs before contract creation. Select True or False.

FALSE

True or False: Contract modifications occur when changes are made to POBs before the contract creation.

FALSE

Zuora Revenue replaces a business's general ledger. Select True or False.

FALSE

Forecasting in Zuora Revenue can be achieved only by manually uploading forecast schedules. Select True or False.

False

The LT/ST reclassification process is completed before the netting process. Select True or False.

False

There is always an increase in the transaction price when considering variable consideration. Select True or False

False

The approach to revenue recognition is a __________ step model.

Five

When are the upload and download buttons visible in the transaction template?

Frozen

Identify the two popular accounting standards that are used by a majority of publicly traded companies globally to organize and present their financial reports periodically.

GAAP & IFRS

What is field-based grouping in defining an RC Grouping template'?

Grouping on the basis of specific fields

A revenue contract is in CA position if:

If the recognized revenue amount is greater than the invoice amount (Cr - Dr < O)

What does it indicate when the sum of the debit balances doesn't equal the sum of the credit balances in a trial balance?

It indicates an error in either recording or posting of journal entries

What is the Standalone Selling Price (SSP)Q

It is the price at which an entity would sell a good or service seperately to a customer.

Which of the following is TRUE about the revenue recognition principle?

It states that revenue must be recorded when it is earned.

Which of the following profiles allows you to specify whether the revenue contract in the contract asset position should participate in the LT/ST reclass?

LT/ST PROCESS FOR RC CA STATUS

Which report helps in identifying all unprocessed records and outstanding errors in the transaction staging table in Zuora Revenue?

Line Staging Report

Identify the release events that are available out-of-the-box in Zuora Revenue? Select all that apply. Upon contract effective Manual upon billing upon booking Upon service activation

Manual upon billing upon booking

Melson Systems wants to rectify an accounting journal entry that it missed during an upload into Zuora Revenue. Identify the process that it should follow to fix this.

Manually create journal entries

Which of the following are examples of standard costs? Select all that apply. Royalties Material purchases Manufacturing costs Commissions Salaries

Material purchases Manufacturing costs Salaries

To set the SSP date for all transaction lines in the revenue contract to the earliest invoice date in the contract, which of the following values should be set under Initial Contract Timeline? Min Invoice Date Line SO Book Date Min. SO Book Date

Min Invoice Date

Identify the profile that determines the number of parallel threads for the netting process.

NETTING_THREADS

Can Zuora Revenue calculate the SSP amount for a new product'?

No

Is it possible to customize the standard layouts in Zuora Revenue?

No, users can only customize a copy of the standard layouts to suit their business needs.

Which ofthe following is true about the Lookup - MATERIAL_RIGHT METHOD? O Specifies the name of the field that is to be used to associate the service line with the product line O Indicates whether the link identifier of material rights is a required field when transactions are uploaded to Zuora Revenue O Specifies whether to trigger material right based on the selling price of the service line O Indicates whether the material right line should participate in allocation when the line is carving out

O Specifies whether to trigger material right based on the selling price of the service line

Identify the template that is brings together the revenue, cost and other price adjustments(also called variable considerations) to each of the promised good or services in a revenue contract.

POB Template

A "Promise" to deliver goods or services in lieu of payment is known as a __________________.

Performance Obligation

An agreement or promise to deliver a good or service to a customer is called a _________________

Performance Obligation

Which of the following is not an example of an event that can be configured in Zuora Revenue to automatically release and schedule revenue for recognition?

Profit

Which of the following statements holds true for the accounting report in Zuora Revenue?

Provides accounting details for all billed lines and has scheduled revenue in the period

Which policy template would you use in Zuora Revenue to group transactions into a revenue contract?

RC Grouping Template

Which template is matched to a transaction upload template in Zuora Revenue?

RC Grouping Template

Which of the following are the typical filter fields that can be seen in a transfer batch in Zuora Revenue? Select all that apply. RC ID Book Name JE Name Product Type Schd Type

RC ID Book Name JE Name Schd Type

Which of the following are mandatory to define a POB template'? Select two options.

Release Event Ratable Methods

Usage, shipment, acceptance, and purchase are examples of what in Zuora Revenue?

Revenue Events

Identify all the applicable types of hold setups that can be defined in Zuora Revenue. Revenue Hold and Validation Hold Revenue Hold and Transfer Hold Revenue Hold and Approval Hold Transfer Hold and Transaction Hold

Revenue Hold and Transfer Hold Revenue Hold and Approval Hold

What type of modification rule is triggered when the contract term is amended in Zuora Revenue?

Rule related to term modification

The _setup in Zuora Revenue allows defining the allocation of revenue across performance obligations.

SSP Setup

As a business user you may often keep track of a particular report. What is the ideal solution to get the latest report at regular intervals?

Schedule a report to run automatically at regular intervals and be emailed

Identify the values accepted in the template for RSSP Min Type. Select all that apply. Sell Price Variable Cost Custom List Price Prospective Cost

Sell Price Custom List Price

Which of the following in the VC upload template enables us to select transactions to apply VC values? Setting up the VC rule Selecting the upload type Setting up VC stratification criteria Setting up a filter criteria in the VC setup

Setting up a filter criteria in the VC setup

Identify the table that stores incoming data from upstream systems. Reporting Table Stage table SSP Table Setup Table

Stage table

What is the price at which a vendor would sell an individual product or service to a customer if it were sold separately to a customer?

Standalone Selling Price

A POB template can be assigned to more than one transaction line. True or False.

TRUE

A buyer's purchase order has details of numerous transactions. To process the transactions in Zuora Revenue, a business may choose to group the transactions into a single revenue contract or multiple contracts. Select True or False.

TRUE

A high-value revenue contract may be protected with a hold by an authorized user such that revenue will not release until the hold itself is released. True or False

TRUE

Deferred revenue is considered a liability because the business is collecting money that it has not yet earned. Select TRUE or FALSE.

TRUE

Question 11: x Incorrect answer Once an RC has been created with conversion waterfall data, subsequent revenue deferral/release can only be done manually. Select True or False.

TRUE

Sales orders with the same purchase order number and customer number can be grouped into one revenue contract. Select True or False.

TRUE

The Accounting calendar in Zuora Revenue is configured during implementation and cannot be modified after go-live. Select True or False.

TRUE

The SSP range is that which is between the Below SSP band and Above SSP band values in Zuora Revenue. Select True or False.

TRUE

Toggling the Skip Contract Modification Rules button to 'No', prevents the need to define different allocation treatments for each contract modifications. Select True or False.

TRUE

Users with Partial Access role privilege can be granted a mix of no access, full access, and read-only access to various menu items in the application. Select True or False.

TRUE

Zuora Revenue allows the defining of multiple grouping rules in an RC grouping template. They can be applied in a defined order through a hierarchy. TRUE or FALE.

TRUE

A POB template defines ____________________

The Timing and Release of Revenue

Revenue schedules or waterfall refer to ______________________

The amount of revenue recognized daily, weekly or quarterly

When RCs are marked for approval, what happens to revenue in the RCQ

The revenue is not released until the RC has been approved

Revenue is allocated from the of the revenue contract to the POBs based on their relative percentage of SSP values.

Transaction price

In which of these currencies can a Waterfall report be generated in Zuora Revenue? Select the three that apply. Transactional currency Functional currency Reporting currency Global currency Entity currency

Transactional currency Functional currency Reporting currency

The process of transferring unposted journal entries from Zuora Revenue to your company's general ledger is known as:

Transfer Accounting

Conversion waterfall retains the waterfall numbers that were uploaded to the system during the RC formation. Select True or False.

True

Forecast schedules and revenue schedules are generated simultaneously based on the occurrence of release events of the POB. Select True or False.

True

Interface mapping is set up in Zuora Revenue during implementation. Select True or False.

True

Interface setup determines the fields to be transferred from Zuora Revenue into the business's general ledger. This is set up during implementation in Zuora Revenue. Select True or False.

True

Material Rights POB template is by default defined in Zuora Revenue and cannot be modified. Select True or False.

True

SSP range is equal to the values between the Below SSP and Above SSP values in Zuora Revenue. Select True or False.

True

To perform the netting process at the application level, we must assign the CA and CL accounts to the revenue book for each company code. Select True or False.

True

VC expiry can be cleared through the Revpr03.O VC Expiry program. Select True or False

True

When the Hold Level is POB, you cannot define criteria for applying the hold. Select True or False.

True

You need to unfreeze the account setup before adding a new cost account type. Select True or False

True

Apart from uploading the cost values in the transaction lines (sales orders, invoices), in what other ways can you process cost values in Zuora Revenue?

Uploading cost lines

Which of the following are a few system-related setups in Zuora Revenue? Select all that apply.

Users & Roles Currencies Accounting Calendar

If you create an order with support and services in two systems, how does Zuora Revenue create a single revenue contract?

Using Grouping Rules

Which of the following tabs in Workbench displays the actual and forecast schedules of revenue at the POB level?

Waterfall

In Zuora Revenue, you can review the revenue contract in detail through the ______________

Workbench

What are the default options to trigger POB satisfaction in Zuora Revenue?

upon Booking upon Billing manually

Which of the following allows you to apply different cost values with the same formula in Zuora Revenue?

using the system-defined variable called Apply Value