Financial Accounting and Management Accounting: Basics Flashcards
What does a general ledger account group control?
classification of the GL acc number range
field status
What are the 4 general ledger or CO area account types?
Balance sheet
Non operating expense exp/rev
Primary cost/rev
Secondary costs
What type of data is recorded at the company code level of a general ledger acct?
Account Currency
What org level does the Chart of Accounts belong to?
Client
What are the 2 FI org levels?
Company code
Segment
What are the 2 CO org levels/elements?
Operating concern
Controlling area
What must be the same for multiple company codes to belong to the same controlling area?
Fiscal year
Operating chart of account
Four types of info maintained the chart of accounts level of a general ledger account?
Acct Name
Acct Number
Acct Type
Acct Group
What do a posting key controls?
Account Type we can post to
Types of posting, Debit or Credit
Field Status of the line item
What is the CO object that is always statistical?
Profit Center
What are the two CO objects that is always real/true?
Profitability Segment
Cost Center
What is the profit center assigned to ?
Segment and Cost center
What does the Asset class controls?
classification of the asset
number range of the asset
field status of the asset
depreciation areas of the asset
What are the areas that depreciation controls?
Depreciation key
Estimated life
Normal Depreciation start date
Index
Previous Usage
What is true about an asset?
Each asset belongs to a company code
Integrated with FI & CO
What is the only CO object that uses activity type?
Cost Center
Cost Center + Activities = ?
Activity rates
What type of information is recorded in the Universal Journal?
General ledger, profitability analysis, management accounting, asset accounting, material ledger
List the main task of Financial Accounting
Post all financial transaction, revenues, and expenses
Keep the data unchanged for reporting purposes
Setting up for P&L and balance sheet for legal reporting
Explain how a subledger is used in FI posting.
Subledger is used for more details information, e.g: usually to know which vendor that we own to. Subledger is synchronized with the general ledger.
Posting made to the subledger through transactions in the SAP system automatically updated to the G/L
What is the purpose of document splitting?
Determine the real time balance sheet item information at segment, profit center, or business area level
[TRUE OR FALSE]
The G/L provides a comprehensive picture of external accounting and financial records
TRUE
[TRUE OR FALSE]
A chart of accounts contains the definitions of all G/L accounts.
TRUE
[TRUE OR FALSE]
A posting key controls the account type to be posted.
TRUE
[TRUE OR FALSE]
An operating concern is assigned to a company code.
FALSE
[TRUE OR FALSE]
An asset is assigned to a company code
TRUE
[TRUE OR FALSE]
Each company code has a separate general ledger.
TRUE
[TRUE OR FALSE]
Primary cost elements are created in Management Accounting
FALSE
[TRUE OR FALSE]
A depreciation run will integrate with both FI and CO (cost center, IO, Project)
TRUE
List all of the real cost object!
Cost center
Profitability Segment
Sales Order
Production Order
List all of the statistical cost object!
Profit center
List all of the both real & statistical cost object!
Internal Order
Project/WBS
What are depreciation areas?
Rules for calculating depreciation determined by asset class. Calculates useful life, remaining life, index details, and date details.
List all FI Master Data!
G/L account, chart of accounts, Assets, bank accounts
How can you use an internal order?
Track Overhead, investment, accrue costs, track revenue.
List the CO Objects that you can settle.
Internal order, maintenance order, production order, projects, WBS element.
What is the difference between a real and a statistical cost object?
Statistical object only used for increased detail reportings Real cost object can settle, allocate, receive, and report.
In an internal order, where do you identify the receivers of the IO’s accumulated costs?
Settlement rule
If we do not post to a Profit Center directly, how is the Profit Center determined?
Cost center. A profit center can be assigned to a cost center and when the cost center is posted against, the profit center can be derived by the assignment to the master data record.
Give an example of when a transaction type is used when posting an accounting document referencing an asset.
Acquisition, depreciation, appreciation, retirement, transfer, clearing, revaluation, etc
Creating an accounting document what type of account requires a transaction type?
Asset account
[TRUE OR FALSE]
Secondary cost elements are defined in FI and are used to allocate costs.
TRUE
[TRUE OR FALSE]
Company codes that are assigned to the same controlling area must have the same operating chart of accounts.
TRUE
