ERP General Ledger & AP/AR Setup 2

Question 1

In ERP GL setup, what does a 'retained earnings account' hold at the start of a new fiscal year?

Accepted Answer

Prior year net income rolled forward automatically

Answer

The retained earnings account accumulates prior-year net income that the system rolls forward during year-end close.

Question 2

Which AP configuration setting controls whether an invoice must be matched to both a purchase order and a receipt before payment?

Accepted Answer

3-way matching

Answer

3-way matching requires alignment of the purchase order, goods receipt, and vendor invoice before approving payment.

Question 3

An AR aging report groups outstanding customer balances by:

Accepted Answer

Invoice date buckets such as current, 30, 60, 90 days

Answer

AR aging buckets overdue invoices by time periods to help collections staff prioritize follow-up.

Question 4

What is the purpose of a suspense account in the general ledger?

Accepted Answer

To temporarily hold transactions that cannot yet be fully classified

Answer

Suspense accounts park unresolved or unclassified transactions until proper coding is determined.

Question 5

In ERP AP setup, a 'payment terms code' of 'Net 30' means:

Accepted Answer

Full invoice payment is due within 30 days of the invoice date

Answer

Net 30 is a standard payment term requiring the full balance to be paid within 30 days.

(ERP) Enterprise Resource Planning Certified Practice Test