Practice Test Geeks(CFC) Certified Financial Controller Practice Test
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ERP Systems & Financial Technology Flashcards

7 cards from real CFC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Which financial technology concept involves using algorithms to automatically match incoming bank transactions to open accounting entries?

    Answer: Bank Reconciliation Automation / Cash Application

    Automated cash application uses rule-based algorithms and AI to match bank receipts to open invoices, dramatically reducing manual reconciliation effort.

  2. A company adopts a cloud-based ERP under a SaaS model. Which of the following is a key financial implication compared to an on-premise deployment?

    Answer: Costs shift from capital expenditure (CapEx) to operating expenditure (OpEx)

    SaaS ERP converts large upfront license and hardware purchases (CapEx) into recurring subscription fees (OpEx), impacting financial statement presentation and cash flow.

  3. What is the purpose of an ERP 'sandbox' or 'development' environment?

    Answer: To test configurations, customizations, and upgrades without affecting the live production system

    A sandbox environment is an isolated copy of the ERP where changes can be safely tested before being promoted to the production environment.

  4. Which ERP concept ensures that a single transaction automatically updates multiple related accounts, such as inventory, COGS, and accounts payable simultaneously?

    Answer: Real-time automatic journal entry posting

    ERP systems post journal entries automatically in real time when transactions occur, ensuring all affected accounts are updated simultaneously and consistently.

  5. A financial controller is evaluating an RPA solution for invoice processing. Which metric BEST measures the ROI of this automation?

    Answer: Cost per invoice processed before vs. after automation, multiplied by invoice volume

    ROI for invoice processing automation is best measured by comparing the fully loaded cost per invoice before and after, scaled to the actual processing volume.

  6. In ERP security, what is 'Segregation of Duties' (SoD) designed to prevent?

    Answer: A single user from having system access rights that enable them to commit and conceal fraud alone

    SoD prevents fraud by ensuring no single employee can initiate, approve, and record a transaction without a second person's involvement.

  7. What does an ERP 'go-live cutover' plan primarily address?

    Answer: The sequence of steps to transition from the old system to the new ERP on a specific date

    The cutover plan details the precise steps, timing, data migration tasks, and rollback procedures for switching from the legacy system to the new ERP.