Oracle Exam 1Z0-511 Topic 2 Question 23 Discussion

Actual exam question for Oracle's 1Z0-511 exam

Question #: 23
Topic #: 2

A company generates revenue at period end, but bills monthly in advance. The customer is invoiced in April with project starting in May and the first project is due to be recognized at the end of May. What are the accounting entries at the end of May?

ADebit: Cost of Goods Sold
Credit: Unbilled Receivables

BDebit: Unearned Revenue
Credit: Revenue

CDebit: Receivable
Credit: Bank

DDebit: Receivable
Credit: Unearned Revenue

EDebit: Bank
Credit: Revenue

Show Suggested Answer

Suggested Answer: D

Invoice

When you run the program to interface invoices to Oracle Receivables, Oracle Projects runs AutoAccounting to determine the appropriate default accounts. If the invoice fails AutoAccounting, then the program marks the draft invoice with an error. See: Overview of AutoAccounting, Oracle Projects Implementation Guide.

The following table shows entries Oracle Projects creates when the Interface Invoices to Oracle Receivables process is run:

Account Debit Credit

Receivables 200.00

Unbilled Receivables and/or Unearned Revenue 200.00

Oracle Project Billing User Guide

by Mozell at May 09, 2022, 05:14 PM

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