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12 basic things to know in GL

 1)   What are different types of accounting methods?
 Ans:      The two primary accounting methods in North America are cash 
       and accrual accounting.
            a) Cash accounting reports income and expenses in the year they are received and paid.
            b)Accrual accounting reports income and expenses in the year they are earned and incurred

2)   What is a trail balance and why we are preparing a trail balance?
Ans:         Preparing a trial balance for a company serves to detect any mathematical 
      errors  that have occurred in the double-entry accounting system. Provided  the 
      total debts equal the total credits, the trial balance is considered to be balanced, 
      and there should be no mathematical errors in the ledgers.

3)  What is Profile and what are different types of Profiles.
Ans:        Profile is the changeable option that affects the way your application runs. 
          There are two types of profile.
           1. System defined
           2. User defined

4)  What are different types of Calendars .
Ans:      Different types of Calendars are listed below
            a) Fiscal year
            b) Calender or Accounting year

5)    What are different types of Currency.
Ans:      a)Functional Currency
             b)Foreign currency.

6)    How many segments are in AFF.
Ans:    max 30 segments and min two.


7)   What are flex field Qualifiers.
Ans:          Flex field Qualifiers is used to identify the segments. Various types of 
           flex field qualifiers are listed below:
            a) Balancing Segment Qualifier.
            b) Cost Center segment Qualifier.
            c) Natural Account Segment Qualifier.
            d) Inter company Segment Qualifier.

8)   What is Dynamic Insertions?
Ans:         You can create Code Combinations at run time.

 9)  What is recurring journal and how many types of recurring journals are they?

Ans:         Recurring journal means the transaction which are receptive in nature are 
          called recurring journal.There are three types of recurring journals are they
            A)standard recurring journal
            B)skeleton recurring journal
            C)formula recurring journal

10)   4c in journal ledger?
Ans :   Chart of accounts
              Calender
              Currency
              GAAP code (Generally Accepted Accounting Practices CODE)


11)   What are different types of Journal entries?
Ans:     There are 4 types of journal entries.

           1. Basic Journal Entry - Used for most of the accounting transactions

           2. Reversing JE - Created by reversing the existing journal entry
           3. Recurring JE - Defined once and then generated for subsequent accounting period
           4. Mass Allocation - Created to allocate the revenues and assets to a group 
              of resources(cost centers, depts,divisions,etc) from a single Journal.

12)    In how many ways can you enter a journal in GL?
Ans:      1. Manual entry
             2. Sub ledger Entry
             3. Spreadsheet Entry
             4. Recurring Entry
             5. Mass Allocation


1 Komentar untuk "12 basic things to know in GL"

Nice post. Helpful information. Thanks

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