1Z0-1054-26 Sample Questions & Answers
Ranges across building financial reports, the top-weighted skill here, closing the period, processing intercompany transactions and reconciliations, journal entries, ledger configuration, enterprise reporting structures, automation features, and Redwood capabilities.
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- Question 1Intermediate
Implementing Enterprise and Financial Reporting Structures · Set up Accounting Calendar and Currencies
Apex Global Corporation is an international retail enterprise implementing Oracle Fusion Cloud Financials (Release 26C). The corporate accounting team manages fiscal operations across multiple jurisdictions requiring unique close schedules and reporting requirements.
The Director of Financial Reporting has outlined two specific operational requirements for the fiscal calendar setup:
- The corporate accounting calendar must support a 13-period annual cycle with two separate year-end adjusting periods to segregate internal management audit adjustments from final statutory external audit entries.
- When defining daily foreign exchange rates between EUR and USD, the system must automatically derive and record the reciprocal USD-to-EUR rate with matching date validity to eliminate redundant manual data entry.
During the implementation workshop, the junior systems administrator attempted to manually key in period names and encountered errors when configuring adjusting periods and exchange rate behaviors.
Which combination of configuration actions in the Manage Accounting Calendars and Manage Daily Rates tasks must be executed to satisfy these corporate requirements?
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Correct answer: A
Under Manage Accounting Calendars, Oracle Fusion General Ledger provides predefined options for Adjusting Period Frequency, specifically including 'Two at year end', 'One at year end', 'Once at the end of each quarter', 'None', or 'Other'. Selecting 'Two at year end' satisfies the requirement for two discrete year-end adjustment intervals. Furthermore, on the Manage Daily Rates page or currency conversion options, checking 'Enforce Inverse Relationship' enforces that entering an exchange rate for EUR to USD automatically computes and records the reciprocal rate for USD to EUR.
flowchart TD A[Manage Accounting Calendars] --> B[Set Frequency: 13 Periods] A --> C[Adjusting Period Frequency: Two at year end] D[Manage Daily Rates] --> E[Check Enforce Inverse Relationship] E --> F[Enter EUR to USD Rate] F --> G[System Automatically Derives USD to EUR Reciprocal] - Question 2Beginner
Implementing Enterprise and Financial Reporting Structures · Set up Accounting Calendar and Currencies
True or False: In Oracle Fusion Cloud General Ledger, enabling the 'Enforce Inverse Relationship' check box when defining daily conversion rates mandates that entering a daily exchange rate from Currency A to Currency B automatically calculates and creates the reciprocal rate from Currency B to Currency A.
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Correct answer: A
True. In Oracle Fusion General Ledger currency setups, selecting the 'Enforce Inverse Relationship' option ensures that whenever a daily exchange rate is entered for a specific currency pair (e.g., USD to GBP), the application automatically computes and records the inverse exchange rate (GBP to USD) using the mathematical reciprocal.
- Question 3Intermediate
Implementing Ledgers · Define General Ledger Security
A general accounting supervisor is assigned a Data Access Set configured with Access Set Type 'Primary Balancing Segment Value'. The assignment grants Read and Write access to balancing segment value (BSV) '10', but grants Read-Only access to BSV '20'. An accountant prepares an unposted manual journal entry containing two lines: Line 1 debits BSV '10' Cash, and Line 2 credits BSV '20' Intercompany Payables. Can the general accounting supervisor edit Line 1 of this journal entry, and why?
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Correct answer: C
In Oracle Fusion Cloud General Ledger, data access set security enforces that a user can only edit or post a journal entry if their data access set grants Read and Write privileges to every primary balancing segment value appearing on every line of that journal. If the user possesses Read-Only access to even one balancing segment value in the entry (in this case, BSV 20), the entire journal becomes read-only for that user and cannot be edited.
flowchart TD A[User attempts to Edit Journal] --> B{Does User have Read and Write to ALL BSVs on ALL Lines?} B -->|Yes| C[Journal Editable] B -->|No: Any Line is Read-Only or Restricted| D[Journal Cannot Be Edited: View-Only Access] - Question 4Advanced
Implementing Ledgers · Define General Ledger Security
A financial systems security manager is setting up a custom Data Access Set using the Manage Data Access Sets task. The manager selects Access Set Type 'Primary Balancing Segment Value' and assigns parent balancing segment value 'P_WEST' with 'Read and Write' privileges. 'P_WEST' represents a parent node in the active account hierarchy that rolls up child values '110', '120', and '130'. How does Oracle Fusion General Ledger enforce security and reflect balances for users assigned this Data Access Set?
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Correct answer: A
When configuring Data Access Sets by Primary Balancing Segment Value, choosing a parent value from the chart of accounts hierarchy automatically extends the assigned privilege (Read or Read and Write) to that parent value and all of its subordinate child values across date-effective tree versions. This grant applies uniformly across transactional journal processing and inquiries within the multidimensional GL Balances Cube.
- Question 5Advanced
Implementing and Managing Journals · Set up Journal Approval
A financial systems architect is configuring General Ledger journal approvals in BPM Worklist for the task 'FinGLJournalApproval'. The client mandates that manual journals exceeding $250,000 must route through a supervisory hierarchy starting from the submitter's direct manager up to a corporate director. Additionally, routine recurring journals and allocation batches submitted by scheduled automated background processes must never be blocked by approval routing. Which configuration approach correctly addresses both requirements?
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Correct answer: B
Under BPM Worklist configuration for task FinGLJournalApproval, using the Supervisory list builder allows traversing the HCM reporting line starting from the workflow submitter's manager up to the required managerial level. Furthermore, in Oracle Fusion General Ledger, journal batches submitted by automated background processes (such as recurring journal execution or allocations) where criteria specify automatic posting naturally bypass approval workflows, posting directly without routing.
- Question 6Intermediate
Implementing and Managing Journals · Manage journals
A corporate controller wants month-end accrual journals entered under the journal category 'Accrual' to automatically reverse on the first day of the subsequent accounting period. To preserve debit and credit column integrity for operational audit reporting, the reversal lines must maintain their original debit and credit placement while displaying negative values, rather than shifting amounts between columns. Which settings in the Journal Reversal Criteria Set satisfy this requirement?
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Correct answer: C
In Oracle Fusion General Ledger, Manage Journal Reversal Criteria Sets allows organizations to configure reversal behaviors per journal category. Selecting 'Next Period' designates the subsequent period for the reversal. Setting Reversal Method to 'Change Sign' preserves the original debit/credit column placement and negates the transaction amounts (unlike 'Switch Debit or Credit', which flips debits to credits and credits to debits). Setting AutoReverse Action to 'Reverse Automatically' ensures reversal journals are automatically generated.
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