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1. Which is NOT a predefined Accounting Class for Revenue Management?
A) Contract Unearned Revenue
B) Contract Asset
C) Contract Liability
D) Contract Discount
2. Revenue tracks several amounts associated to a customer contract, for example, selling amount, allocated amount, and billed amount. What is allocated amount?
A) transaction price derived from the source system line import
B) stand-alone selling price assigned to the promised detail line
C) revenue recognized for each performance obligation
D) transaction price distributed to each performance obligation
3. Which setup component Is NOT connected to a Revenue Price Profile?
A) Contract Identification Rules
B) Source Document Types
C) Items
D) Pricing Dimension Segments
4. Revenue Management integrates with the Subledger Accounting application. Which three services does Subledger Accounting provide to Revenue Management?
A) centralized accounting solution
B) multiple accounting representations
C) stand-alone selling price derivation
D) General Ledger account derivation based on predefined events
E) revaluation of assets and liabilities
F) General Ledger journal creation
5. Which statement does NOT describe how revenue is handled under the latest standards under ASC 606 and IFRS 15?
A) You book the invoiced amount to the P&L when you meet the regulatory definition by Industry.
B) Liability is a list of goods and services you actually owe to the customers for future satisfaction via transfer.
C) You value the accrual at estimated consideration and it is a monetary debt.
D) You accrue for goods and services that you owe to customers because either you or they have relied on the contract. You no longer defer revenue.
E) You calculate the liability at inception and book it when either party acts. An Act could be shipping or invoicing.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: B,E,F | Question # 5 Answer: D |
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