Oracle Exam 1Z0-516 Topic 7 Question 35 Discussion

Actual exam question for Oracle's 1Z0-516 exam

Question #: 35
Topic #: 7

Scott, the CFO at ABC Company in the USA, wants to present the annual income statement to the board or directors of the company.

ABC Company engages in many exports and import activities and follows the policy to revalue all its transactions in foreign currency with the current market rates. Scott requests George, the head accountant of the company, to revalue all foreign currency transactions done during the year.

Select two prerequisites that George must comply with to ensure that the revaluation is done as desired. (Choose two.)

ADefine accounts for realized gains and realized losses.

BDefine accounts for unrealized gains and unrealized losses.

CDefine the weights for each currency used for doing transactions.

DDefine a batch under which the revaluation journals would be stored.

EDefine a revaluation rate for each currency for each period or date for which the revaluation must be run.

Show Suggested Answer

Suggested Answer: B, E

by Avery at Nov 13, 2024, 04:39 AM

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Lashaunda

4 months ago

Hey, at least they're not asking you to revalue the CFO's stock options. That's a whole other headache!

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Mozelle

4 months ago

Hmm, this is a tricky one. I'd go with B and E - can't forget about those unrealized gains and losses!

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Aimee

2 months ago

Scott: Perfect, looking forward to the board meeting!

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Annett

2 months ago

George: Will do, I'll make sure everything is in place for the presentation.

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Crissy

2 months ago

Scott: Great, and don't forget to define a revaluation rate for each currency for each period.

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Maddie

3 months ago

George: Scott, I'll make sure to define accounts for unrealized gains and losses.

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Marsha

4 months ago

C and E, for sure. You need to define the weights for each currency and the specific revaluation rates to get the numbers right.

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Audry

4 months ago

I'd say B and D are the key ones. Tracking the revaluation journals in a separate batch is a must for audit purposes.

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Ronnie

4 months ago

Definitely B and E. Unrealized gains and losses are crucial, and you need to define the specific revaluation rates for each currency and period.

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Terrilyn

3 months ago

Great, let's make sure everything is in place before presenting the annual income statement to the board of directors.

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Joye

3 months ago

Got it. I will ensure that both prerequisites are complied with before revaluing the foreign currency transactions.

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Jesusita

3 months ago

Yes, Scott also mentioned that we need to define a revaluation rate for each currency and period.

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Princess

3 months ago

Scott: Yes, and we also need to define a revaluation rate for each currency for each period.

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Kristofer

3 months ago

George: I agree, we definitely need to define accounts for unrealized gains and losses.

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Irene

4 months ago

George, make sure to define accounts for unrealized gains and losses.

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Halina

4 months ago

I believe George should also define a revaluation rate for each currency for each period.

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Christene

4 months ago

I agree with Louisa. It's important to have those accounts set up for accurate revaluation.

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Louisa

5 months ago

I think George should define accounts for unrealized gains and unrealized losses.

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