Month End Closing Process! Finance Quiz

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Teksoft2013
T
Teksoft2013
Community Contributor
Quizzes Created: 1 | Total Attempts: 379
| Attempts: 379
Quiz Flashcard
SettingsSettings
Please wait...
  • 1/10 Questions

    There is no sequence of importance in the close transaction steps ... all that matters is that they all get performed.

    • True
    • False
Please wait...
About This Quiz

Month end closing process finance quiz. Every month end transactions that have been made are combines so as to come with monthly financial statements. Preparation of monthly statements not only makes it easy to prepare end year statements but also helps to track movement of the firm financial position. Do take up this quiz and see how well you understand what you should do on month end. Allt he best!

Month End Closing Process! Finance Quiz - Quiz

Quiz Preview

  • 2. 

    With regard to foreign currency translation rates

    • The rate with a validity date closest to the posting date without being in the future is the rate used.

    • Rate have to be entered before the "old" period is closed.

    • Rates are only entered once a month on the 15th.

    • Only one rate type can exist for each currency combination.

    Correct Answer
    A. The rate with a validity date closest to the posting date without being in the future is the rate used.
    Explanation
    The correct answer is the rate with a validity date closest to the posting date without being in the future is the rate used. This means that when translating foreign currency, the rate that is closest to the date of the transaction is used. It should not be a rate that is in the future. This ensures that the translation is based on the most current exchange rate available at the time of the transaction.

    Rate this question:

  • 3. 

    A balance sheet and income statement can be run at any time.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A balance sheet and income statement can be run at any time because they provide a snapshot of a company's financial position and performance. These financial statements can be prepared at the end of a specific period, such as a month, quarter, or year, or they can be generated at any other point in time to assess the current financial status of the company. This flexibility allows businesses to monitor their financial health and make informed decisions based on the information provided by these statements.

    Rate this question:

  • 4. 

    The FIRST closing step that needs to be performed is?

    • FK10N

    • KKAK

    • MMPV

    • VKM1

    Correct Answer
    A. MMPV
    Explanation
    The correct answer is MMPV. MMPV is the transaction code used in SAP for closing the period in Material Ledger. It is used to perform activities such as closing the current period, updating exchange rates, and carrying out valuations for materials. This step needs to be performed first before any other closing steps can be executed in SAP.

    Rate this question:

  • 5. 

    Asset depreciation should be run before the GR/IR clearing.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Asset depreciation should be run after the GR/IR clearing. GR/IR clearing is the process of reconciling the Goods Receipt/Invoice Receipt account in the general ledger with the corresponding accounts in the subledger. Once this process is completed, the asset depreciation can be accurately calculated based on the reconciled values. Therefore, the correct answer is False.

    Rate this question:

  • 6. 

    The month-end close process that involves production orders entails the following:

    • Run asset depreciation, then billing due list, and then calculate overhead.

    • Review blocked billing docs, then process vendor payments, and then execute order settlement.

    • Calculate overhead, calculate WIP, calculate variances, and then execute order settlement.

    • Review PO listing for goods received, not invoiced, calculate variances, and then post parked docs.

    Correct Answer
    A. Calculate overhead, calculate WIP, calculate variances, and then execute order settlement.
    Explanation
    The correct answer is "Calculate overhead, calculate WIP, calculate variances, and then execute order settlement." This is because the month-end close process involving production orders requires calculating overhead costs, calculating work in progress (WIP), calculating any variances, and finally executing the order settlement. This sequence ensures that all costs and financial transactions related to production orders are accurately accounted for and settled.

    Rate this question:

  • 7. 

    FI Period Close t-code and related settings.

    • Can only be executed one time, the first day of the new period.

    • Can be set by module individually, all FI modules collectively and can be opened or closed as often as deemed necessary.

    • Can only be controlled by sub-module, not collectively.

    • Is part of MMPV.

    Correct Answer
    A. Can be set by module individually, all FI modules collectively and can be opened or closed as often as deemed necessary.
    Explanation
    The FI Period Close t-code and related settings can be customized to be set by module individually or collectively for all FI modules. This means that each module within the FI system can have its own specific period close settings, or all modules can have the same settings. Additionally, the period can be opened or closed as often as needed, based on the requirements of the organization. This flexibility allows for efficient financial period management. The statement also mentions that the period close is part of MMPV, which is a transaction code used for period close activities in SAP systems.

    Rate this question:

  • 8. 

    Which step in invoice creation enters the invoice into the SAP system after it has been parked?

    • Completing an invoice

    • Simulating an invoice

    • Posting an invoice

    • Answers A and C

    Correct Answer
    A. Posting an invoice
    Explanation
    Posting an invoice is the step in invoice creation that enters the invoice into the SAP system after it has been parked. Once the invoice has been parked, it is not yet considered as officially entered into the system. Posting the invoice finalizes the process and ensures that the invoice is recorded and accounted for in the SAP system. Therefore, the correct answer is "Posting an invoice".

    Rate this question:

  • 9. 

    What t-code displays PO goods delivered, not invoiced?

    • F.19

    • F-32

    • VF04

    • ME2L

    Correct Answer
    A. ME2L
    Explanation
    ME2L is the correct answer because it is a t-code that displays Purchase Order (PO) goods that have been delivered but not yet invoiced. This transaction code provides a list of all open POs with their respective delivery status, allowing users to track the goods that have been delivered but have not yet been invoiced. This information is essential for monitoring the status of deliveries and ensuring accurate financial records.

    Rate this question:

  • 10. 

    All journal entries in GL must be posted before running a P&L report in SAP.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    This statement is false because the journal entries in the general ledger (GL) do not need to be posted before running a Profit and Loss (P&L) report in SAP. In SAP, P&L reports can be generated based on both posted and unposted journal entries in the GL. Therefore, it is not necessary to post all journal entries before running a P&L report in SAP.

    Rate this question:

Quiz Review Timeline (Updated): Mar 20, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Apr 07, 2014
    Quiz Created by
    Teksoft2013
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.