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Chapter 1
Introduction to Business Processes
Multiple Choice Questions

1.Which term refers to business processes that are not executed by a single group or
function?
a. Silo Effect
b. Cross-Functional
c. Functional Structure
d. Enterprise Systems
e. Organizational Structure
Answer: b Difficulty: Easy Page Reference: 1

Section: The Functional Organizational Structure Practice:
2. Which term refers to a system in which workers complete their tasks in separate
departments without regard to the consequences for the other components of the
process?
a. ERP Effect
b. Cross-Functional
c. Functional Structure
d. Enterprise Systems
e. Silo Effect
Answer: e Difficulty: Easy Page Reference: 2

Section: The Functional Organizational Structure: The Silo Effect Practice:
3.Which system supports business processes end to end?
a. Management System
b. Accounting System
c. Enterprise System
d. Functional Structure
e. Document System
Answer: c Difficulty: Medium Page Reference: 2

Section: The Functional Organizational Structure: The Silo Effect Practice: Yes
4. Which of the following statements about business processes is true?
a. They are executed across multiple functions.

b. They are initiated by some type of trigger.
c. They involve multiple steps.
d. All of the above
e. None of the above
Answer: d Difficulty: Medium Page Reference: 4

Section: Business Processes
5. Which term represents a set of tasks or activities that produce desired outcomes?
a. Business Process
b. Trigger
c. Outcome
d. Enterprise Resource Planning
Answer: a Difficulty: Easy Page Reference: 4

Section: Business Processes Practice:
6. Which term refers to all of the activities involved in buying or acquiring the materials
used by the organization, such as raw materials needed to make products?
a. Material Planning
b. Procurement Process
c. Production Process
d. Fulfillment Process
e. Lifecycle Data Management
Answer: b Difficulty: Medium Page Reference: 5

Section: Business Processes Practice: Yes
7. Which process involves the actual creation of the products?
Answer: c
8. Which process uses historical data and sales forecasts to plan which materials will
be procured and produced?
Answer: a Difficulty: Medium Page Reference: 5

Section: Business Processes Practice: Yes
9. Which process supports the design and development of products from the initial
product idea stage through the discontinuation of the product?
Answer: e Difficulty: Medium Page Reference: 5

Which process tracks the financial impact of process steps with the goal of meeting
10. legal reporting requirements?
a. Human Capital Management (HCM)

b. Project Management
c. Financial Accounting
d. Management Accounting or Controlling (CO)

Which process is used to plan and execute large projects such as the construction of a
11. new factory or the production of complex products such as airplanes?


Which process focuses on people within an organization and includes functions such
12. as recruiting, hiring, training, and benefits management?

Answer: a Difficulty: Difficult Page Reference: 6

What is the final step of the procurement process?

13.
a. Invoice
b. Purchase Requisition
c. Purchase Order
d. Payment
Answer: d Difficulty: Easy Page Reference: 6

Section: Business Processes: Procurement-Buy Practice:
What steps are involved in the accounting portion of the procurement process ?
14.
a. Receiving the materials and the invoice

b. Creating the purchase requisition and sending payment
c. Creating and sending the purchase order
d. Creating the purchase requisition and receiving the materials
e. Receiving the invoice and sending payment
Answer: e Difficulty: Difficult Page Reference: 7

Section: Business Processes: Procurement-Buy Practice: Yes
What is the first step of the production process?

15.
a. Authorize Production
b. Request Production
c. Create Product
d. Receive Finished Goods
e. Issue Raw Materials

Section: Business Processes: Procurement-Make Practice: Yes
What function does the warehouse perform in the fulfillment process?
16.
a. Prepares and sends the shipment to the customer

b. Communicates data related to the order to other parts of the organization
c. Tracks the order
d. Notifies the customer

Section: Business Processes: Procurement-Make Practice: Yes
___________ is concerned with matching the demand for materials in the organization
17. with the supply.
a. Business Planning
b. The Silo Effect
c. Project Management
d. Material Planning

Section: Business Processes: Material Planning-Plan Practice:
Which of the following is concerned with the storage and movement of materials?
18.
b. Silo Effect
e. Inventory and warehouse management (IWM)

Section: Business Processes: Inventory and Warehouse Management-
Store
Practice:
_____________enables an organization to optimize its product development process,

19. from design to market, while ensuring that it complies with industry, quality, and
regulatory
standards?
b. Lifecycle Data Management

Section: Business Processes: Lifecycle Data Management-Design Practice:
_____________ provides tools to manage and store documents securely and to keep
20. track of the multiple versions of these documents?
a. Document Management
b. Enterprise Management

Section: Business Processes: Lifecycle Data Management-Design Practice:
How does GBI Global sell its merchandise?

21.
a. Directly to customers
b. Via a network of specialized dealers
c. Via the Internet
d. All of the above

Section: Global Bicycle Incorporated (GBI) Practice: Yes
Which of the following statements about SAP R/3 is true?

22.
a. It supports a single function or department

b. It is an end-to-end enterprise system
c. Sharing data between departments is problematic
d. None of the above

Section: How to use this book: SAP Software and Certification Practice: Yes
Chapter 2
Introduction to SAP ERP

1.Which term relates to the technical capabilities that allow systems to connect with one
another through standardized interfaces called Web services?
a. Enterprise Resource Planning
b. Supply Chain Management
c. Architecture
d. Service-Oriented Architecture
Answer: d
2. Which term refers to the technical structure of the software, how users interact with
the software, and how the software is physically managed on computer hardware?
a. Architecture
b. Supply Chain Management
c. Enterprise Resource Planning
d. Service Oriented Architecture

Section: Enterprise Systems Practice:
3.Which of the following is used to integrate several client-server applications and create
enterprise mash-ups, or composite applications?
a. Management System
b. Accounting System
c. Enterprise System
d. All of the above
e. Web Services

Section: Enterprise Systems Practice: Yes
4.Which system connects a company’s ERP system to those of its customers?
a. Application Platform
b. Customer Relationship Management (CRM)
c. Enterprise Solution
d. Product Lifecycle Management (PLM)

5.Which of the following systems helps companies administer the processes of research,
design, and product management?
a. Application Platform
b. Customer Relationship Management (CRM)
c. Enterprise Solution
d. Product Lifecycle Management (PLM)

6. Which program is the “operating system” for an entire company’s business

processes?
a. Microsoft Vista
b. Linux
c. SAP NetWeaver
d. SAP Prolific

Section: Application Platforms Practice:
7. The highest organizational level in SAP ERP is the
a. Vendor
b. Client
c. Material Master
d. Plant

Section: Data in an Enterprise System – Organizational Data Practice:
8. Which of the following is(are) used to represent the structure of an enterprise?
a. Organizational Data
c. Client
d. Plant

9. Which of the following terms refers to an organizational element that performs

multiple functions and is relevant to several processes?
a. Warehouse
b. Procurement
c. Plant
d. Fulfillment

Section: Data in an Enterprise System – Organizational Data Practice: Yes
10. How many company codes can a plant belong to?
a. One
b. Two
c. Three
d. Any Number

11. Which of the following master data is used in numerous processes?
a. Material Master
b. Plant
c. Company Code
d. Customer Master
e. Vendor Master

Section: Data in an Enterprise System – Master Data Practice:
12. Materials that are created by the production process from other materials are referred
to as _____________
a. Finished Goods (FERT)

b. Semi-finished Goods (HALB)
c. Trading Goods (HAWA)
d. Raw Materials

13.
What type of materials is purchased from a vendor?
a. Trading Goods
b. Finished Goods (FERT)
c. Semi-finished Goods (HALB)
d. Material Types

14.
Materials that are purchased from an external source (a vendor) and used in the
production process are known as ______________
a. Finished Goods (FERT)

b. Semi-finished Goods (HALB)
c. Trading Goods (HAWA)
d. Raw Materials

15.
Which of the following terms refers to materials with similar characteristics?
a. Material Master
b. Material Group
c. Transaction Data
d. Material number

16.
____________reflect(s) the consequences of executing process steps.
a. Material Groups
b. Organizational Data
c. Transaction Data
d. Project Management

Section: Data in an Enterprise System – Transaction Data Practice:
17.
Financial accounting (FI) documents, management accounting or controlling (CO)
documents, and material documents are referred to as
a. Transaction Documents
b. Transaction Data
c. Material Group
d. Virtual Documents
Answer: d Difficulty: Difficult Page Reference: 13

Section: Data in an Enterprise System – Transaction Data Practice:
18.
Which term is generally used to describe the ways that users can view and analyze data
to
help them make decisions and complete their tasks?
a. Reporting
b. Evaluating
c. Characteristics
d. Period Definition
e. Online Analytic Processing (OLAP)

Section: Data in an Enterprise System – Reporting Practice: Yes
19.
Which of the following is(are) used to capture specified transaction data in an aggregated
and
summarized form that enables users to analyze the data as needed.
a. Reporting
b. Evaluating
c. Information Structures
d. Period Definition
e. Online Analytic Processing (OLAP)

Section: Data in an Enterprise System – Reporting Practice: Yes
20.
Which of the following identify tasks that are scheduled to be completed in a process?
a. Online Lists
b. Parameters
c. Information Structures
d. Work Lists
e. Period definitions

Section: Reporting – Work Lists Practice:
1. All of the following are key organizational elements in the fulfillment process except
a. Client
b. Company code
c. Sales area
d. Plant
e. Warehouse
Answer: e
2. Which one of the following combinations of organizational elements is included in the

definition of a sales area?
a. Sales organization, distribution channel, division
b. Sales organization, company code, division
c. Client, distribution channel, division
d. Client, plant, division
e. Sales organization, distribution channel, plant
Answer: a
Difficulty: Moderate
Section Reference: Organizational Data
3. Which of the following is NOT a typical characteristic of a wholesale channel?

a. It does not include sales taxes in calculating prices in the US.
b. It distributes goods directly to consumers.
c. It requires a minimum volume of purchase.
d. It offers volume discounts.
e. It may designate a specific plant or plants from which deliveries are made.
Answer: b
Section Reference: Organizational Data - Distribution Channel
4. In the fulfillment process, a plant is

a. A manufacturing facility only
b. A facility from which the company provides after-sales support
c. A facility from which the company delivers only services to its customers
d. A storage area
e. A facility from which the company delivers products and services to its customers
Answer: e
5. All of the following are examples of a shipping point except

a. A rail depot
b. A loading dock
c. A storage rack
d. A mail room
e. A designated group of employees
Answer: c
6. All of the following are key organizational elements for which material master data are
defined for the fulfillment process except
a. Client
b. Distribution channel
c. Plant
d. Sales organization
e. Shipping point
Answer: e
Section Reference: Master Data - Material Master
7. Material master data are grouped into views. Which one of the following combination of
views is relevant to the fulfillment process?
a. Basic data, sales organization data, sales plant data
b. Basic data, company data, sales plant data
c. Basic data, sales organization data, client data
d. Client data, sales area data, sales plant data
e. Basic data, sales area data, warehouse data
Answer: a
Section Reference: Master Data - Material Master
8. The data in the customer master are divided into the following three segments:
a. Plant data, accounting data, and sales area data
b. General data, financial data, and sales zone data
c. General data, accounting data, and shipping area data
d. Client data, accounting data, and sales zone data
e. General data, accounting data, and sales area data
Answer: e
Section Reference: Master Data - Customer Master
9. Which master data do companies use to determine the prices of their products?
a. Price comparison
b. Pricing conditions
c. Selling price
d. Wholesale price
e. Tax allowances
Answer: b
Section Reference: Master Data - Pricing Conditions
10. Which action triggers sales order processing in the fulfillment process?
a. Delivery of goods to the customer
b. Receipt of goods from a vendor
c. Receipt of a customer purchase order
d. Receipt of payment from customer
e. Picking goods for shipment
Answer: c
Section Reference: Process
11. What is the final step in the fulfillment process?

a. Delivery of goods to the customer
b. Receipt of payment from the customer
c. Receipt of a customer purchase order
d. Receipt of goods from a vendor
e. Picking goods for shipment
Answer: b
12. Which one of the following represents the correct order of process steps for the fulfillment
process?
a. Sales order processing , pre-sales activity, inventory sourcing, shipping, billing, payment
b. Sales order processing, pre-sales activity, inventory sourcing, billing, billing, payment
c. Pre-sales activity, payment, sales order processing, inventory sourcing, shipping, billing
d. Pre-sales activity, sales order processing, shipping, billing, inventory sourcing, payment
e. Pre-sales activity, sales order processing, inventory sourcing, shipping, billing, payment
Answer: e
13. Which of the following types of data is NOT included in a quotation?

a. Material master
b. Customer-material info records
c. Customer master
d. Vendor master
e. Pricing conditions
Answer: d
14. Which of the following types of data is NOT included in a billing document?
a. Data from the customer master
b. Data from the sales order
c. Data from the delivery document
d. Organizational data
e. Pricing conditions
Answer: e
15. The shipping step concludes with _________
a. Goods issue
b. Picking
c. Packing
d. Goods receipt
e. Goods delivery
Answer: a
Difficulty: Difficult
Section Reference: Process - Shipping
16. Which of the following organizational levels is NOT relevant to the fulfillment process?
a. Purchasing organization
b. Shipping point
c. Storage location
d. Sales area
e. Plant
Answer: a
17. Which of the following organizational levels is associated with a company's product line?
a. Sales organization
b. Sales area
c. Distribution channel
d. Sales group
e. Division
Answer: e
18. Which of the following organizational levels is associated with the method used to distribute
materials to a customer?
a. Sales organization
b. Sales area
c. Distribution channel
d. Sales group
e. Division
Answer: c
19. Output conditions include all of the following types of data except
a. Output type
b. Transmission medium
c. Transmission time
d. Output mode
Answer: d
20. Which of the following statements regarding customer master data is NOT true?
a. They contain data that are needed to make postings in FI.
b. They are valid for a specific sales area.
c. They include data that are stored at the client level.
d. They include data that are needed to make postings in CO.
Answer: d
21. Which of the following statements regarding the fulfillment process is NOT true?
a. One delivery document can be created from multiple sales order documents.
b. An accounting document is created when a goods issue is posted.
c. A sales order must be created with reference to a quotation.
d. A quotation can generate multiple sales orders.
Answer: c
22. Which of the following is NOT a key step in the fulfillment process?
a. Sales order processing
b. Inventory sourcing
c. Shipping
d. Invoice verification
e. Pre-sales activity
Answer: d
23. Pre-sales activity includes all of the following except

a. Customer inquiries
b. Quotations
c. Mailing campaigns
d. Customer purchase orders
e. Tracking customer contacts
Answer: d
24. What document is NOT created during the billing step of the fulfillment process if
profitability analysis is active?
a. An invoice
b. An FI document
c. A material document
d. A CO document
Answer: c
Section Reference: Process - Billing
25. Which of the following is not taken into consideration when determining a customer's credit
exposure?
a. open orders
b. scheduled deliveries
c. open invoices
d. current purchase orders
Answer: d
26. The fulfillment process is integrated with all of the following processes except
a. Procurement
b. Inventory and warehouse management
c. Asset management
d. Material planning
Answer: c
27. Which reporting options does SAP ERP system support?

a. Online lists
b. Work lists
c. Analytics
d. All of the above
Answer: d
Chapter 4
The Procurement Process
1.
Which one of the following is not a type of organizational data that is utilized in the
procurement process?
a. Client
b. Company Code
c. Storage Location
d. Purchasing Organization
e. Manufacturing Plant

Section: Organizational Data Practice:
2.
What is a storage location?
a. The place where raw materials are received

b. The place within a plant where materials are kept until they are needed
c. The place where materials are collected for staging and inspection
d. The place within a plant where machines are installed for production purposes
e. The place within a plant where finished goods are kept for sale

Section: Storage Location Practice:
3.
Which organizational element(s) control(s) the entry of accounting data in the vendor
master?
a. Purchasing organization
b. Client
c. Company Code
d. Client and Company Code
e. Client and Purchasing Organization

Section: Organizational Data Practice: Yes
4.A purchasing organization is involved in all of the following operations except
a. Negotiating contracts and agreements

b. Negotiating pricing with vendors
c. Evaluating and identifying vendors
d. Determining storage locations within the plant
Section: Purchasing Organization Practice:
5.Which one of the following is not a model of the purchasing organization?
a. Enterprise level
b. Company level
c. Client level
d. Plant level
e. Cross-plant
Answer: c Difficulty: Medium Page Reference: 4-6

Section: Purchasing Organization Practice:
6.Within the plant-level purchasing organization, also known as a plant-specific

purchasing
Organization,
a. Each plant has its own purchasing organization

b. One purchasing organization is responsible for multiple plants
c. Only one purchasing organization for all plants
d. One purchasing organization is responsible for all company codes in the
enterprise
e. Two or more purchasing organizations are responsible for each plant

Section: Plant-Level Purchasing Organization Practice:
7.A purchasing group is an individual or a group of individuals who are responsible for all
of the following except
a. Creating purchase requisitions

b. Negotiating contracts and agreements
c. Requesting quotations from vendors
d. Creating and monitoring purchase orders
e. Planning for material requirements

Section: Purchasing Group Practice:
8.Which one of the following is not one of the data types that are relevant to the
purchasing
process?
a. Material master
b. Vendor master
c. Sales master
d. Purchasing info records
e. Conditions

Section: Master Data Practice:
9.The key data in the purchasing view of the material master are
a. The purchasing organization, the goods receipt processing time, and the
delivery tolerances
b. The purchasing group, the goods receipt processing time, and the delivery
tolerances
c. The purchasing group, the invoice, and the delivery tolerances
d. The purchasing group, the material master, and the delivery tolerances
e. The price, the storage location, and the delivery date

Section: Material Master Practice:
10.
Data in the vendor master are grouped into which three segments?
a. General data, storage data, and purchasing data

b. General data, storage data, and inventory data
c. Storage data, accounting data, and purchasing data
d. Storage data, accounting data, and pricing data
e. General data, accounting data, and purchasing data

Section: Vendor Master Practice:
11.
General data in a vendor master contain all of the following except:
a. Name
b. Address
c. Communication
d. Payment terms and methods
e. Search term

Section: Vendor Master Practice: Yes
12.
Which of the following is an intersection or combination of material data and vendor
data?
a. Condition type
b. Purchasing info record
c. Stock transfer
d. Third-party order
e. Search term

Section: Purchasing Info Records Practice:
13.
Which item category would you use to have your vendor ship goods directly to your
customer?
a. Consignment
b. Third-party
c. Stock transfer
d. Standard
e. Transfer posting

Section: Item Categories Practice: Yes
14. Materials that are acquired to be used within the organization are referred to as
a. Stock materials
b. Transfer materials
c. Vendor materials
d. Consumable materials

Section: Account Determination Practice:
15.
Which of the following account assignment categories is used when the company acquires
a fixed asset?
a. Cost center
b. Asset
c. Order
d. Sales order
e. Project

Section: Account Determination Practice:
16. Which of the following document types is not utilized during the Purchasing process?
a. Material documents
b. Fl documents
c. CO documents
d. Picking document
e. Invoice

Section: Good Movement Practice:
17.
A FI document includes a header and an items section. Which of the following data are
included in the items section?
a. Document number
b. Account
c. Storage location
d. Document date
e. Document currency

Section: Goods Receipt Practice: Yes
18.
Which of the following statements about a plant is not true?
a. A plant can be assigned to more than one company code

b. A company code can have more than one plant
c. A plant is a key organizational element in purchasing
d. A plant can be assigned to only one company code
e. A plant must have at least one storage area

Section: Goods Movement Practice:
19.
Which of the following goods movements need not involve a physical movement of
materials?
a. Goods receipt
b. Goods issue
c. Stock transfer
d. Transfer posting
e. None of the above (all involve physical movement of materials)

Section: Goods Movement Practice:
20.
Which element of the requirements determination process involves creating the
requisition?
a. Data
b. Task
c. Trigger
d. Outcomes
Answer: b Difficulty: Difficult Page Reference: 21

Section: Requirements Determination Practice:
21.
A company can use which of the following to select a vendor from a list of potential
suppliers ?
a. Source list
b. Company code
c. Vendor master
d. Material master

Section: Source of Supply Determination Practice:
22.
Which element of a purchase order includes communicating with the vendor?
a. Trigger
b. Data
c. Task
d. Outcome

Section: Order Processing Practice:
23.
Which item is included in the header of a purchase order?
a. Order quantity
b. Vendor
c. Delivery date
d. Price

Section: Order Processing Practice: Yes
24.
SAP can utilize which of the following media to communicate with a vendor?
a. Web services
b. EDI
c. Fax
d. Print
e. All of the above

Section: Order Processing Practice:
25.
Which of the following is(are) a form of data within the goods receipt step?
a. Material ordered
b. Quantity delivered
c. Verification
d. Storage location
e. All of the above

Section: Goods Receipt Practice:
26.
Which of the following is a form of invoice verification?
a. Three-way match
b. Quality management
c. Inspection lot
d. Warehouse management

Section: Invoice Verification Practice:
27.
Which element of the payment step includes selecting a bank?
a. Trigger
b. Data
c. Outcome
d. Task

Section: Payment Processing Practice:
28.
Which of the following facilitates the integration between vendor master data and
financial
accounting?
a. Vendor account number

b. Reconciliation account
c. Accounts payable number
d. Material number
e. Accounts receivable number

Section: Payment Processing Practice: Yes
29.
Purchasing information systems are a component of which system?
a. Logistics information systems

b. Business intelligence systems
c. Financial information systems
d. Human resource information systems

Section: Purchasing Information Systems Processing Practice: Yes
Package Title: Test bank

Course Title: Introduction to Accounting
Question type: Multiple Choice

1. ____________ is concerned with recording the financial impacts of business processes as
they
are executed.
a. Management accounting
b. Financial accounting (Fl)
c. Controlling (CO)
d. Bank ledger accounting
Answer: b
Difficulty: Medium
Section Reference: Learning Objectives
2. Which of the following is a key process in financial accounting?
a. Sales order processing

b. Accounts receivable accounting
c. Credit management
d. Income verification
e. All of the above
Answer: b
Difficulty: Easy
3. Which process is used to manage money owed by

customers for goods and services purchased from the company?
a. General ledger accounting

b. Accounts receivable accounting
c. Fixed asset accounting
d. Bank ledger accounting
e. All of the above
Answer: b
Difficulty: Medium
4. Which process is concerned with recording data associated with bank statements?
a. Bank ledger accounting
b. Fixed asset accounting
c. General ledger accounting
d. Accounts receivable accounting
Answer: a
Difficulty: Easy
5. ____________ are internal divisions of an enterprise that are used to define areas of
responsibility or to meet the external reporting requirements of an enterprise segment.
a. Cost centers
b. Depreciation areas
c. Business areas
d. Sub-ledgers
Answer: c
Difficulty: Medium
6. Which term refers to an ordered listing of accounts that comprise a company’s general ledger?
a. General ledger
b. Balance sheet
c. Bank ledger
d. Chart of accounts (COA)
Answer: d
Difficulty: Medium
Section Reference: Master Data
7. Which term represents what a company owns, such as cash, inventory of materials, and
buildings?
a. Liabilities
b. Equity
c. Assets
d. Revenues
Answer: c
Difficulty: Medium
Section Reference: General Ledger Accounting
8. Which term represents what a company owes to others, including money owed to vendors and
loans from financial institutions?
a. Liabilities
b. Equity
c. Assets
d. Revenues
Answer: a
Difficulty: Medium
9. Which term represents the monies a company earns by selling its products and services?
a. Liabilities
b. Assets
c. Expenses
d. Revenue
e. Equity
Answer: d
Difficulty: Medium
10. Which term represents the costs associated with creating and selling products and services?
a. Assets
b. Expenses
c. Liabilities
d. Equity
Answer: b
Difficulty: Medium
11. Which element is not a part of the typical company code data in general ledger accounts?
a. Tax-related data
b. Field status groups
c. Line item display
d. Reconciliation account data
Answer: e
Difficulty: Difficult
12. Which term is a general ledger account that consolidates data from a group of related sub-
ledger accounts?
a. Subsidiary ledger
b. Sub-ledger
c. Reconciliation account
d. Line item display
Answer: c
Difficulty: Medium
Section Reference: Subsidiary ledgers and Reconciliation Account
13. Which of the following records the impact of a transaction step on financial accounting?
a. Financial accounting document

b. Parallel accounting document
c. Sub-ledger
d. Subsidiary ledger
Answer: a
Difficulty: Medium
Section Reference: Accounting Documents
14. Which of the following is used to implement multiple ledgers and use each ledger for different
purposes?
a. Financial accounting document

b. Subsidiary ledger
c. Sub-ledger
d. Parallel Accounting
Answer: d
Difficulty: Easy
Section Reference: Parallel Accounting
15. Which type of asset has a physical form?
a. Master asset
b. Tangible asset
c. Informal asset
d. Intangible asset
Answer: b
Difficulty: Easy
Section Reference: Asset Accounting
16. Which type of asset has a non-physical form?
a. Master asset
b. Tangible asset
c. Informal asset
d. Intangible asset
Answer: d
Difficulty: Easy
17. Which of the following is used to report data needed to meet legal and regulatory
requirements?
a. Assets
b. Equity
c. Tangible document
d. Financial statement
Answer: d
Difficulty: Medium
Section Reference:
19. Which of the following is not a mode of acquiring an asset for a company?
a. Acquiring internally via the production process

b. Acquire from a vendor using the purchasing process
c. Acquire from a vendor without using the purchasing process
d. Selling equipment
e. Acquiring without a vendor
Answer: d
Difficulty: Easy
20. All of the following are transaction types that occur during the life of an asset except
___________ .
a. Acquisition
b. Depreciation
c. Allocation
d. Retirement
Answer: c
Difficulty: Easy
21. Financial statements can be generated from which of the following?
a. Operative COA
b. Country-specific COA
c. Both operative and country-specific COAs
d. Neither operative nor country-specific COAs
Answer: c
Difficulty: Easy
Section Reference: Financial Statements

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Chapter 1

Introduction to Business Processes

Multiple Choice Questions

Answer: b Difficulty: Easy Page Reference: 1

Answer: e Difficulty: Easy Page Reference: 2

3.Which system supports business processes end to end?

Answer: c Difficulty: Medium Page Reference: 2

a. They are executed across multiple functions.

Answer: d Difficulty: Medium Page Reference: 4

Answer: a Difficulty: Easy Page Reference: 4

Answer: b Difficulty: Medium Page Reference: 5

7. Which process involves the actual creation of the products?

Answer: a Difficulty: Medium Page Reference: 5

Answer: e Difficulty: Medium Page Reference: 5

a. Human Capital Management (HCM)

Answer: c Difficulty: Medium Page Reference: 6

a. Human Capital Management (HCM)

Answer: b Difficulty: Medium Page Reference: 6

a. Human Capital Management (HCM)

Answer: a Difficulty: Difficult Page Reference: 6

What is the final step of the procurement process?

Answer: d Difficulty: Easy Page Reference: 6

a. Receiving the materials and the invoice

Answer: e Difficulty: Difficult Page Reference: 7

What is the first step of the production process?

Answer: b Difficulty: Easy Page Reference: 7

a. Prepares and sends the shipment to the customer

Answer: a Difficulty: Easy Page Reference: 8

Answer: d Difficulty: Medium Page Reference: 8

Answer: e Difficulty: Medium Page Reference: 9

_____________enables an organization to optimize its product development process,

Answer: b Difficulty: Medium Page Reference: 10

Answer: a Difficulty: Medium Page Reference: 10

How does GBI Global sell its merchandise?

Answer: b Difficulty: Medium Page Reference: 13

Which of the following statements about SAP R/3 is true?

a. It supports a single function or department

Answer: b Difficulty: Medium Page Reference: 15

Multiple Choice Questions

Answer: a Difficulty: Medium Page Reference: 1

Answer: e Difficulty: Medium Page Reference: 2

4.Which system connects a company’s ERP system to those of its customers?

Answer: b Difficulty: Medium Page Reference: 4

Answer: d Difficulty: Medium Page Reference: 4

6. Which program is the “operating system” for an entire company’s business

Answer: c Difficulty: Medium Page Reference: 5

7. The highest organizational level in SAP ERP is the

Answer: b Difficulty: Medium Page Reference: 7

8. Which of the following is(are) used to represent the structure of an enterprise?

Answer: a Difficulty: Easy Page Reference: 6

9. Which of the following terms refers to an organizational element that performs

Answer: c Difficulty: Medium Page Reference: 7

Answer: a Difficulty: Medium Page Reference: 8

11. Which of the following master data is used in numerous processes?

Answer: a Difficulty: Medium Page Reference: 8

a. Finished Goods (FERT)

Answer: a Difficulty: Medium Page Reference: 10

Answer: a Difficulty: Difficult Page Reference: 10

a. Finished Goods (FERT)

Answer: d Difficulty: Easy Page Reference: 10

Answer: b Difficulty: Easy Page Reference: 11

Answer: c Difficulty: Medium Page Reference: 12

Answer: d Difficulty: Difficult Page Reference: 13

Answer: a Difficulty: Easy Page Reference: 14