Livre Bob Question Chapter 3 - 4 Flashcards
Give an example of Owners equity
New share worth 45000 that the compagny issued
Give an example of an asset
Shares woth 100 000$ that this company purchases in other companies as a way of investing some of its earnings.
Give an example of a liability
26 500$ that the company is yet yo pay its suppliers for goods alreay supplied
Explain the impact of the following transaction:
Company uses cash to buy raw materials 500$
No change to total assets
Redistribution occurs only within the assets side.
Cash decreases by 500$ and inventory increases.
( the company now has additional raw material of 500$
Explain the impact of the following transaction:
Company takes out a new long-term loan for 100 000$
Total assets increase because the company now has 100 000$ in cash( on the left-side of the equation)
There is also an additional long-term liability( the new bank loan that the company now has to pay.
Explain the financial impact of this transaction.
The company receeives raw material worth 50 000$ and has been invoiced by the vendor in full. The company has not yet paid for this purchase.
Since the company has an additional 50 000$ worth of raw material, assets have increased.
The company owes 50 000$ and hence its account payable - a liability - has increased by 50 000$.
Explain the financial impact of this transaction.
The company uses 200 000$ of its cash to buy back ( repurchase) some if its own stock,
Assets decreased because the company now has that much less cash.
Owners equity decreased by 200 000$ because the value of oustanding shares with shareholders went down as well.
Explain the financial impact of this transaction.
The company pays back 100 000$ of its outstanding loan.
Cash decreased by 100 000$.
At the same time, loans - a liability - also decreased.
Explain the financial impact of this transaction.
The company pays 50 000$ to the vendor mentionned above.
Cash decreased by 50 000$. Accounts payable - a liability - also decreased on 50 000$.
Explain the financial impact of this transaction.
The company places a new purchase order with a vendot to supply goods worth 35 000$
No financial accounting impacts. Impact only starts when the company receives the good ordered as that will change the value of material stock.
Explain the financial impact of this transaction.
The company sells some its land 1 000 000$
Value of land - an asset - decreased by 1 000 000 . Cash - also an asset - increases by 1 000 000. Thus, this transaction only impacts the assets side of the balance sheet.
What is the relationship between the Chart of Accounts and the General Ledger?
The Chart of Accounts specifies the various account that a company wants to use, and assigns a number to each. It represents the structure that company uses or wants to use for its financial accounting. We could say that it represents the design of a company’s accounting structure.
True or False? The Chart of Accounts does not have any details of actual transactions.
True
True or False? The General ledger on the other hand does not represents the actual accounts and holds the various transactions posted to each account.
False
“Does represent”
True or False?
The General Ledger is based on a Chat of Accounts. All the accounts with their account numbers specifies in the Chart of Accounts exist in the G/L and we can the various postings as well in the GL.
Vrai
If two different company codes use the same Chart of Accounts for their General Ledger, does this mean that they will always have identical transactions posted for each account?
No. The chart of account is only the structure. The company will post its transactions to its own general ledger.
What is the impact on profits if a company charges less depreciation than it should?
We see that various costs as well as depreciation are subtracted from the sales revenues to arrive at the profit. If a company charges a lower depreciation that it should, then it will clearly end up with higher profits.
What are the reconciliation accounts?
Accounts that accumulate the postings made in subledger.
Ex: Accouns Receivable Account at the Balance Sheet level.
At what level is the G/L managed?
Company code
What is the organization level coresponding to a legal entity in SAP?
Compagny code
What is the smallest SAP entity that supports a full set of books?
Company code
Which organization element supports the creation of Balance Sheet and Income Statements that cut accross company codes.
Segment( or Business Area)
Which organization element is concerned with tracking of profits within a component of a company code?
Profit Center
Which organization element is concerned with tracking the performance of external maket segments?
Operating Concern
How many company codes can be in a client?
Many
To how many codes can a business area be linked?
Many
Where does the controlling area fit into the organization elements of SAP?
It exists within the Client and has one or more Company Codes as assigned to it.
How many company codes can be allocated to a controlling area?
Many
What restriction applies to a company code when it is assignment to a controlling area?
All company codes associated with the same Controlling Area must use the same Operative Chart of Accounts.
At what level are Charts of Account maintened?
Client
How many charts of account can a company code us
One (This is true for legal reporting. However alternative charts of accounts are frequently used for consolidation – such as the case when assigning a company code to a controlling area)
How many company codes within a client can use the same Chart of Accounts?
Many
From where do GL accounts get their definition?
Chart of Accounts
What are the two segments that make up a complete G/L master record?
Chart of Accounts segment and company code segment
Which segment of the G/L master contains general information which describe the account?
Chart of Accounts
Which segment of the GL master contains specific information about how a company chooses to use an account?
Company code
Reconciliation _______ allow for ________of G/L accounts with sub-ledger accounts
“account” | “real-time integration”
True or False : The account for an individual vendor or customer would be found in the sub-ledger.
True
Give me an example of a reconciliation account?
The Account Receivable G/L balance sheet account used to consolidate individual customer receivables.
The feature of the G/L that allows for postings within a document to be broken out into different categories. such as profit centers and segment?
Document splitting
What SAP customers cant ake advantage of light-wight management accounting functionality by using profit centers within FI?
Profit Centers
In SAP FI, there is a single ledger at the client level which is?
Leading ledger
Is it always possible to drill down into the line item list of an account from the balance display for a G/L account.
TRUE OR FALSE?
False. Drilling down into the details of an account is possible only if it is enabled for that account?
The vendor business partner includes three roles whi ch are?
General role = client, FI Vendor=company code, Supplier role = purchase organization
The reconciliation account number for Accounts Payable in the G/L is stored in which role and which organizational level of the business partner?
FI Vendor at the company code
Information about purchasing data for a vendor can be found in which role and which organizational level of the vendor business partner?
Supplier and Purchasing Organization
The customer business partner has information in the following roles which are?
General role ( Client) FI Customer (Company code, Customer role)
