SAP Business One Certification Exam Practice Test #5

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

True

False

In an assembly Bill of Materials (BOM), the finished product is indeed included in the sales order document. This means that when a customer places an order for the finished product, all the components and sub-assemblies required to produce the finished product are listed in the sales order document. This helps in accurately tracking and fulfilling the customer's order by ensuring that all necessary parts are included in the production process.

Explanation

In an assembly Bill of Materials (BOM), the finished product is indeed included in the sales order document. This means that when a customer places an order for the finished product, all the components and sub-assemblies required to produce the finished product are listed in the sales order document. This helps in accurately tracking and fulfilling the customer's order by ensuring that all necessary parts are included in the production process.

2. When production order is completed the receipt from production is credited, stock account of product is debited, by the actual value of finished product and WIP account is credited.

True

False

When a production order is completed, the receipt from production is credited to acknowledge the completion of the order. At the same time, the stock account of the product is debited to reflect the increase in inventory due to the finished product. Additionally, the Work in Progress (WIP) account is credited to account for the transfer of costs from the WIP stage to the finished goods stage. This ensures that the financial records accurately reflect the completion of the production order and the corresponding changes in inventory and cost allocation. Therefore, the statement is true.

Explanation

When a production order is completed, the receipt from production is credited to acknowledge the completion of the order. At the same time, the stock account of the product is debited to reflect the increase in inventory due to the finished product. Additionally, the Work in Progress (WIP) account is credited to account for the transfer of costs from the WIP stage to the finished goods stage. This ensures that the financial records accurately reflect the completion of the production order and the corresponding changes in inventory and cost allocation. Therefore, the statement is true.

3. The Inventory turn ratio, is a metric determining inventory usage.

True

False

The inventory turnover ratio is a measure used to assess how efficiently a company is managing its inventory. It calculates the number of times inventory is sold and replaced in a given period. A higher inventory turnover ratio indicates that a company is selling its inventory quickly and efficiently, while a lower ratio suggests that inventory is not being sold as quickly. Therefore, the statement that the inventory turnover ratio is a metric determining inventory usage is true.

Explanation

The inventory turnover ratio is a measure used to assess how efficiently a company is managing its inventory. It calculates the number of times inventory is sold and replaced in a given period. A higher inventory turnover ratio indicates that a company is selling its inventory quickly and efficiently, while a lower ratio suggests that inventory is not being sold as quickly. Therefore, the statement that the inventory turnover ratio is a metric determining inventory usage is true.

4. Template BOM can have each of the three attributes purchase, sales and inventory items.

True

False

Template BOM can have each of the three attributes purchase, sales, and inventory items. This means that the template Bill of Materials can include information related to purchases, sales, and inventory items. This statement is true as it states that all three attributes can be present in the template BOM.

Explanation

Template BOM can have each of the three attributes purchase, sales, and inventory items. This means that the template Bill of Materials can include information related to purchases, sales, and inventory items. This statement is true as it states that all three attributes can be present in the template BOM.

5. The component for Sales BOM and assembly BOM must be sales item.

True

False

The statement is true because both the Sales BOM (Bill of Materials) and Assembly BOM (Bill of Materials) components must be sales items. This means that the items included in these BOMs are products that can be sold to customers. It is important for these components to be sales items as they are directly related to the sales process and the final products that will be sold to customers.

Explanation

The statement is true because both the Sales BOM (Bill of Materials) and Assembly BOM (Bill of Materials) components must be sales items. This means that the items included in these BOMs are products that can be sold to customers. It is important for these components to be sales items as they are directly related to the sales process and the final products that will be sold to customers.

6. For both the Sales BOM and Assembly BOM you do not manage the finished product as an inventory item, but rather as a sales item.

True

False

The explanation for the given correct answer, True, is that both the Sales BOM (Bill of Materials) and Assembly BOM do not treat the finished product as an inventory item. Instead, they consider it as a sales item. This means that the focus is on selling the product rather than managing it as a stock item.

Explanation

The explanation for the given correct answer, True, is that both the Sales BOM (Bill of Materials) and Assembly BOM do not treat the finished product as an inventory item. Instead, they consider it as a sales item. This means that the focus is on selling the product rather than managing it as a stock item.

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

True

False

Outgoing payment does not require suspense account

Explanation

Outgoing payment does not require suspense account

8. What are True to Report Composer?

You cannot print the report composer

You cannot convert into finished report in MS Excel

The report can be converted into report definition and the report designer for more advance editing

You can make queries about data in data base and arrange them into a quick preliminary report

A.You can...
B. You can....

Explanation

A.You can...
B. You can....

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9. Which are True to report organizer in XL reporter?

You can save the executed report into a report book

You can also distribute a finished report via E-mail

You cannot create a report definition i.e, displayed and edited in report designer.

The report organizer does not allow you to assign the report to main menu in business one

You can execute report definition to get a finished report in M.S Excel

C. you can....
D. The report organizer allows you .....

Explanation

C. you can....
D. The report organizer allows you .....

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10. What are True to Manual reconciliation?

You can manually reconcile one G/L account at a Time.

You cannot reconcile multiple Business Partner account.

Partial reconciliation is not possible by manual reconciliation.

For Business Partner you can also create an incoming or outgoing payment as an adjustment.

B. You can reconcikle multiple BP account.
C. Partial reconcillation is possible in manual reconcillation.

Explanation

B. You can reconcikle multiple BP account.
C. Partial reconcillation is possible in manual reconcillation.

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11. Level 2 to 4 consists of active and title account.

True

False

2 to 4 consists of active or title account

Explanation

2 to 4 consists of active or title account

12. Which are True to Production Order?

Production Order is a command to produce or repairs a production items

The production order supports the planning and assembly of a production item

It Tracks all the material transaction and cost that are involved in the production process.

Special production Order is used for continious production order

D. Standard production order is used for continuous production order

Explanation

D. Standard production order is used for continuous production order

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13. What are True to BOM in Production?

Sales and assembly BOM are collection of individual items in a set without a specific price

They cannot have more than one level

The components are items that you can also sell individually

The Sales BOM and Assembly BOM represent a finished product that is assembled at the Sales stage

A. with a specific price.
B. Have more than one level

Explanation

A. with a specific price.
B. Have more than one level

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14. Which are the input tools in SAP B1?

User defined tools

Pick and pack tools

Selection list

Drag down list

The input tools in SAP B1 are selection list and drag down list. These tools allow users to choose from a predefined list of options when entering data into the system. A selection list provides a dropdown menu with a list of options, while a drag down list allows users to select an option by dragging it down from a list. These input tools help streamline data entry and ensure accuracy by providing predefined options for selection.

Explanation

The input tools in SAP B1 are selection list and drag down list. These tools allow users to choose from a predefined list of options when entering data into the system. A selection list provides a dropdown menu with a list of options, while a drag down list allows users to select an option by dragging it down from a list. These input tools help streamline data entry and ensure accuracy by providing predefined options for selection.

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15. Which of the following statements are True for open Item created?

The system makes posting directly to bank account

You deposit cash,cheque and credit cards.

You post payments using bank transfer

You use bank processing statement option

The open item created allows the system to make postings directly to the bank account. It also allows for the deposit of cash, cheques, and credit cards. Additionally, payments can be posted using bank transfer, and the bank processing statement option can be used.

Explanation

The open item created allows the system to make postings directly to the bank account. It also allows for the deposit of cash, cheques, and credit cards. Additionally, payments can be posted using bank transfer, and the bank processing statement option can be used.

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