CFC ERP Systems & Financial Technology 3

Question 1

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

Accepted Answer

Bank Reconciliation Automation / Cash Application

Answer

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

Question 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?

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

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

Answer

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

Question 4

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

Accepted Answer

Real-time automatic journal entry posting

Answer

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

Question 5

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

Accepted Answer

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

Answer

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.

(CFC) Certified Financial Controller Practice Test

(CFC) Certified Financial Controller Practice Test

CFC ERP Systems & Financial Technology 3