MGT 351 Exam 1

In the fulfillment process, the sales order is created after the invoice is received from the customer.

False

One of the disadvantages of the business process approach is increased lead times.

False

The financial accounting process focuses on internal reporting to manage costs and revenues

False (Managerial Accounting)

The business process approach is enabled and supported by stand-alone and legacy systems.

False (Traditional Functional)

A plant represents the central organizational element in financial accounting (FI) meaning that the books are maintained at this level for legal reporting.

False (company code)

For raw materials, we would need to define sales related views in the ERP/SAP systems because raw materials are sold to customers in the fulfillment process.

False (we don't sell raw materials)

Which of the following is the primary chart of accounts maintained by an organization?

operative chart of accounts

Enterprise resource planning (ERP) focuses on the internal operations of an organization.

True

SAP S/4 HANA is the next generation Business Suite by SAP that replaces the SAP ERP Business Suite.

True

The material master is the most commonly used master data category because it is used in numerous processes.

True

Which of the following terms explains implementing multiple ledgers and using each ledger for different purposes?

parallel accounting

General data in a vendor master contain all of the following except:

payment terms and methods

Which of the following provides data about the combination of one material and one vendor?

purchasing info records

What steps are involved in the accounting portion of the procurement process?

receiving the invoice and sending payment

Which one of the following is not one of the master data types that are relevant to the purchasing process?

sales master

Which of the following is an example of organizational data relevant to the procurement process?

storage location

Enterprise system application business suite (SAP Business suite as discussed in class) include which of the following systems? (Multiple answer question. 4 correct answers.

supplier relationship management, enterprise resource planning, supply chain management, customer relationship management (all but DI)

What is the bank account sorted by?

according to assignment numbers starting from 000 (posting dates)

A FI document includes a header and an items section. Which of the following data are included in the items section?

account

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

accounts payable accounting

Considering all the steps you worked on, after which step did your Vendor's Account Balance change for the first time?

after receiving the invoice

Considering all the process steps you worked on, after which step did the inventory levels of your tradings goods change?

after receiving the shipment

Considering all the process steps you worked on, after which step did the moving average prices of your trading goods change?

after receiving the shipment

Which term represents what a company owns, such as cash, inventory of materials, and buildings?

assets

Why is it helpful to be able to set views?

because the material master is used in many different processes and each process might require different pieces of information found in different views

Which of the following is not a key process in financial accounting?

chart of accounts

What is the difference between the company code and the purchasing organization?

company code is the legal entity within the client; whereas the purchasing organization is the organizational unit that negotiates general conditions of purchase and contracts for one ore more plants/companies

Which of the following steps in the procurement process does NOT have an FI impact?

create purchase order

What does the field status group determine?

determines the screen layout for document entry

A purchasing organization is involved in all of the following operations except

determining storage locations within the plant

Reporting in financial accounting is broadly divided into which of the following two categories?

displaying account information and generating financial statements

What are the planning levels used to control in SAP?

displays in cash management

Within the plant-level purchasing organization, also known as a plant-specific purchasing organization:

each plant has its own purchasing organization

Creating the Purchase Order had an impact on the inventory levels of my trading goods.

false

When materials are being moved from one plant to another one, they are classified as unrestricted stock.

false

Management accounting is externally focused and its purpose is to meet legal and regulatory reporting requirements

false (internally)

The content of financial accounting reports is defined by internal management needs.

false (laws and regulations)

A purchasing organization is involved only in negotiating prices with vendors.

false (they do more than just that)

Data in the vendor master are grouped into which three segments?

general data, accounting data, and purchasing data

Which of the following is master data in financial accounting?

general ledger account

Which of the following represent the master data in Financial Accounting?

general ledger accounts, dub ledger accounts, chart of accounts

Purchasing information systems are a component of which system?

logistics information systems

Which one of the following is not a type of organizational data that is utilized in the procurement process?

manufacturing plant

What are 3 types of master data?

materials, customers, vendors

What does the Tax Category E0 stand for?

A/P Sales Tax Exempt

Which process is used to manage money owed by customers for goods and services purchased from our company?

Accounts receivable accounting

Which of the following about SAP HANA are correct? (Multiple answer question. 4 correct answers. Partial credit available).

All but runs on SAP Fiori (reduces redundancies, in-memory database management system, data is stored in RAM, processes high volumes of data in real time)

Which of the following statements about business processes is/are true?

All of the above (they are executed across multiple functions, they are initiated by some type of trigger, they involve multiple steps)

Which of the following is a balance sheet account?

Asset accounts

Which of the following represent the organizational data (levels) in Financial Accounting?

Business area, client, company code (all but chart of accounts)

____________ are primarily used to facilitate external segment reporting across company codes, covering the company's main areas of operation (product lines, branches, geographic divisions).

Business areas

Which term refers to an ordered listing of accounts that comprise a company's general ledger?

Chart of accounts

The highest organizational level in SAP ERP is the:

Client

Which of the following is an example of master data? Data about:

Customers

Which of the following are examples of online lists? ( (Multiple answer question. 2 correct answers

List of material documents, list of customers

_____________is concerned with collecting and allocating costs back to the locations or departments where those costs are incurred.

Management accounting- controlling (CO)

Which process uses historical data and sales forecasts to plan which materials will be procured and produced?

Material Planning

How many company codes can a plant belong to?

One (MI40 can only belong to me)

---------------- data defines the structure of the enterprise in terms of legal or business purposes and includes the definitions of companies, divisions, purchasing organizations, plants etc.

Organizational

Which term is a general ledger account that consolidates data from a group of related sub-ledger accounts?

Reconciliation account

Which term is generally used to describe the ways that users can view and analyze data (transaction and historical data) to help them make decisions and complete their tasks?

Reporting

What is the first step of the production process?

Request Production

Which of the following is an example of organizational data? Data about:

Sales Organizations

Which of the following departments are involved in the fulfillment (sell) process? (Multiple Answer Question. 3 correct answers.

Sales, Accounting, Warehouse

------------ means workers complete their tasks in separate departments without regard to the consequences to the other departments and the company.

Silo Effect

Which of the following are included in transaction documents? ( (Multiple answer question. 3 correct answers.

Situational data, master data, organizational data

Which of the following statements concerning transaction data are true? (Multiple answer question. 2 correct answers.

Transaction data are a consequence of the execution of process steps. Transaction data are constantly changing.

Which of the following statements about a plant is not true?

a plant can be assigned to more than one company code

Which of the following statements about creating Purchase Requisitions in the SAP system is/are correct?

the PR can be created manually, the PR can be created automatically, the PR can be triggered by another business process (all of the above)

The key data in the purchasing view of the material master are

the purchasing group, the goods receipt processing time, and the delivery tolerances

Which of the following is a form of invoice verification?

three-way match

Which of the following goods movements need not involve a physical movement of materials?

transfer posting

A material document is created for every goods movement.

true

An increase in an asset account or an expense account results in a debit posting, whereas a decrease results in a credit posting.

true

Financial accounting is concerned with recording the financial impacts of business processes as they are executed.

true

Four common stock types are: Unrestricted use, in quality inspection, blocked stock, and stock in transit.

true

General data related to a vendor are accessible to all company codes in a client.

true

Goods Receipt is the first step in procurement that has an impact on financials, specifically on general ledger accounts.

true

Material master data includes financial accounting data.

true

Multiple requisitions can be combined into one purchase order.

true

The enterprise-level purchasing organization is the most centralized model.

true

The method used to value materials is defined in the material master.

true

The movement type "transfer posting" is used to change the stock type or status of material (e.g., from in quality inspection to unrestricted use) or to reclassify the material into a different material type.

true

The posting key specifies the account type for posting the document item (such as customer, G/L account) and whether the document item is posted as a debit or a credit

true

Typically, there are three models of purchasing organizations: enterprise level, company level, and plant level.

true

Which of the following is an example of master data relevant to the procurement process?

vendor