Design and Configure the Chart of Accounts and Financial Dimensions MB-310 Practice Questions (Page 10)

Questions 46–50

1. 46application · medium

   A company wants to track the purchase order number on all vendor invoice transactions for reporting. They do not want this to be a financial dimension because it would create too many dimension combinations. What should you configure?

   • ACreate a new main account for each purchase order.
   • BCreate a financial tag for Purchase Order Number and enable it for vendor invoice transactions.
   • CUse a derived dimension to capture the purchase order number.
   • DAdd Purchase Order Number as a financial dimension to the account structure.
   Reveal Solution Discussion Select an answer first
2. 47application · medium

   A company operates two legal entities. In the US entity, main account 1000 (Cash) is used. In the German entity, the same account is named 'Kasse' and has a different description. The finance team wants to use the same main account ID across both entities but display the German name and description only in the German entity. What should you configure?

   • ACreate a separate main account 1000 in the German entity with the German name and description.
   • BConfigure a main account category for the German entity to override the name.
   • CUse a financial dimension to represent the legal entity and change the name per dimension value.
   • DSet up a legal entity override for main account 1000 in the German entity to change the name and description.
   Reveal Solution Discussion Select an answer first
4. 48expert · hard

   A company wants to capture the project manager name on each expense transaction for internal reporting. The finance team is considering whether to use a financial dimension or a financial tag. The company also needs to report on the project manager in financial statements. What should you recommend?

   • AUse a financial tag for project manager because it does not affect account structures.
   • BUse a derived dimension rule to assign the project manager.
   • CUse a ledger account alias that includes the project manager name.
   • DUse a financial dimension for project manager because it can be used in financial statements.
   Reveal Solution Discussion Select an answer first
5. 49application · medium

   A consulting company needs to capture the project manager name on each expense transaction for internal reporting, but the project manager is not a legal entity or a department. The finance team does not want to create a financial dimension because it would require changes to the account structures. What should you configure?

   • AConfigure a derived dimension rule to assign the project manager.
   • BCreate a financial dimension named 'Project Manager' and add it to the account structure.
   • CCreate a financial tag named 'Project Manager' and apply it to expense transactions.
   • DUse a ledger account alias that includes the project manager name.
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6. 50application · medium

   A company is designing its chart of accounts. They need to comply with a local regulatory requirement that mandates a specific account number format (e.g., four digits for balance sheet accounts and six digits for income statement accounts). They also want to keep the chart of accounts consistent across all legal entities. What should you do?

   • AConfigure legal entity overrides to change the account number format per entity.
   • BDesign the main account numbers to follow the regulatory format and use the same chart of accounts for all legal entities.
   • CCreate a separate chart of accounts for each legal entity to meet the regulatory format.
   • DUse financial dimensions to represent the account number format.
   Reveal Solution Discussion Select an answer first