ERP General Ledger & AP/AR Setup 3

Question 1

What is a 'chart of accounts segment' used for in ERP GL configuration?

Accepted Answer

Breaking the account string into dimensions such as company, department, and natural account

Answer

Segments partition the account string so transactions can be classified by multiple dimensions like entity, cost center, and natural account.

Question 2

In AP, 'early payment discount' (e.g., 2/10 Net 30) means the buyer receives a 2% discount if:

Accepted Answer

Payment is made within 10 days of the invoice date

Answer

The term '2/10 Net 30' grants a 2% discount when payment is made within the first 10 days.

Question 3

Which of the following best describes an 'intercompany elimination' in a consolidated GL?

Accepted Answer

Canceling out transactions between entities within the same corporate group

Answer

Intercompany eliminations prevent double-counting revenue and expenses when consolidating subsidiary financials.

Question 4

In AR, a 'credit memo' is issued to a customer primarily to:

Accepted Answer

Reduce the amount the customer owes due to returns or adjustments

Answer

A credit memo reduces the customer's balance, typically after a return, pricing error, or allowance.

Question 5

What ERP feature prevents a GL journal entry from posting if debits do not equal credits?

Accepted Answer

Balance validation or posting control

Answer

ERP systems enforce double-entry integrity by blocking out-of-balance journal entries from posting.

(ERP) Enterprise Resource Planning Certified Practice Test