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Question 1: All of your subsidiaries can share the same ledger with their parent company and all reside onthe same application instance. They do perform intercompany accounting.
What does Oracle consider the best practice approach to performing consolidations?
A. Use Oracle Hyperion Financial Management for this type of complex consolidation.
B. Use General Ledger's Balance Transfer programs to transfer subsidiary ledger balances to
theparent ledger, and then enter eliminating entries as a separate balancing segment in the parent
ledger.
C. Use General Ledger's Financial Reporting functionality to produce consolidated reports
bybalancing segment where each report represents a different subsidiary. Any eliminating entries can
be entered in yet another separate balancing segment.
D. Create separate ledgers for each subsidiary that shares the same chart of accounts,
calendar,currency, and accounting method. Create a separate elimination ledger to enter
intercompany eliminations. Then create a ledger set across all ledgers and report on the ledger set.
Correct Answer: A
Explanation:
Reference:
http://www.oracle.com/us/solutions/business-intelligence/consolidation-solution-1876985.pdf
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