SAP Business One Certification Exam Practice Test #2

1. The Inventory turn ratio is a metric determining inventory usage:

True

False

The inventory turn ratio is a metric that measures how efficiently a company is using its inventory. It calculates the number of times inventory is sold and replaced within a specific time period. A high inventory turn ratio indicates that inventory is being sold quickly, which is beneficial for cash flow and profitability. Therefore, it is true that the inventory turn ratio is a metric determining inventory usage.

Explanation

The inventory turn ratio is a metric that measures how efficiently a company is using its inventory. It calculates the number of times inventory is sold and replaced within a specific time period. A high inventory turn ratio indicates that inventory is being sold quickly, which is beneficial for cash flow and profitability. Therefore, it is true that the inventory turn ratio is a metric determining inventory usage.

2. At the end of the fiscal year the balances of asset will be displayed on the active side and balances of liability account and equity account on the passive side. True or False?

True

False

At the end of the fiscal year, the balances of assets are typically displayed on the active side of the balance sheet. This is because assets represent the resources owned by the company, such as cash, inventory, and property. On the other hand, the balances of liability accounts and equity accounts are displayed on the passive side of the balance sheet. Liabilities represent the company's obligations or debts, while equity represents the ownership interest in the company. Therefore, it is true that the balances of asset accounts are displayed on the active side, and the balances of liability and equity accounts are displayed on the passive side of the balance sheet at the end of the fiscal year.

Explanation

At the end of the fiscal year, the balances of assets are typically displayed on the active side of the balance sheet. This is because assets represent the resources owned by the company, such as cash, inventory, and property. On the other hand, the balances of liability accounts and equity accounts are displayed on the passive side of the balance sheet. Liabilities represent the company's obligations or debts, while equity represents the ownership interest in the company. Therefore, it is true that the balances of asset accounts are displayed on the active side, and the balances of liability and equity accounts are displayed on the passive side of the balance sheet at the end of the fiscal year.

3. For the assembly BOM, the finished product appears in the sales order document.

True

False

In an assembly BOM (Bill of Materials), the finished product is included in the sales order document. This means that when a sales order is placed, the complete assembly is listed as the product that will be delivered to the customer. This is true because the assembly BOM includes all the individual components and subassemblies required to create the finished product, and it is important to have a clear record of what will be shipped to the customer.

Explanation

In an assembly BOM (Bill of Materials), the finished product is included in the sales order document. This means that when a sales order is placed, the complete assembly is listed as the product that will be delivered to the customer. This is true because the assembly BOM includes all the individual components and subassemblies required to create the finished product, and it is important to have a clear record of what will be shipped to the customer.

4. The system does not need any suspense account for incoming credit card payment, incoming cheque, and bank transfer.

True

False

The statement is false because the system does need a suspense account for incoming credit card payment, incoming cheque, and bank transfer. A suspense account is used to temporarily hold transactions that cannot be immediately identified or allocated to a specific account. In the case of incoming payments and transfers, there may be a delay or uncertainty in identifying the correct account to allocate the funds to, hence the need for a suspense account.

Explanation

The statement is false because the system does need a suspense account for incoming credit card payment, incoming cheque, and bank transfer. A suspense account is used to temporarily hold transactions that cannot be immediately identified or allocated to a specific account. In the case of incoming payments and transfers, there may be a delay or uncertainty in identifying the correct account to allocate the funds to, hence the need for a suspense account.

5. If you try to deposit an amount in bank from your cash register greater than the account balance, the system will block you.

True

False

If you try to deposit an amount in the bank from your cash register that is greater than the account balance, the system will block you. This means that the bank's system has a mechanism in place to prevent individuals from depositing more money than they actually have in their account. This is a measure taken by the bank to ensure that customers do not accidentally or intentionally overdraw their accounts and incur fees or penalties.

Explanation

If you try to deposit an amount in the bank from your cash register that is greater than the account balance, the system will block you. This means that the bank's system has a mechanism in place to prevent individuals from depositing more money than they actually have in their account. This is a measure taken by the bank to ensure that customers do not accidentally or intentionally overdraw their accounts and incur fees or penalties.

6. After the end of the fiscal year the balances of the expense account will be subtracted from the balances of the liability account to come up with the profit and loss account True or False?

True

False

Balances of Expenses account subtracted from balances of Revenue account...

Explanation

Balances of Expenses account subtracted from balances of Revenue account...

7. What are True to Account Currency

For multi-currency account account you can conduct external bank reconciliation in the local currency.

At any point you can change multi-currency account to a particular currency account.

B. The system manage account balance in foreign,local and system currency. E. At any point you can change an account currency to be multi-currency but you will not be able to change it back once you update.

Explanation

B. The system manage account balance in foreign,local and system currency. E. At any point you can change an account currency to be multi-currency but you will not be able to change it back once you update.

Submit

8. What are True to Bank Statement Processing.

Posting of external reconcillation of bank debits and credits

Posting and internal reconciliation of interim account used in payment with payment means of bank transfer.