Free Practice Questions for Oracle 1Z0-511 Exam

Question 1

The Finance Director is concerned that some of his or her project revenue may be overstated. What it should be reviewed to understand the revenue position on each project?

Athe Project Status Inquiry to review the project's margin figures

Bthe expenditure inquiry to understand the project's revenue position against the invoice position

Cthe Project Summary unbilled receivables and unearned revenue report, which will identify all unearned revenue

Dthe revenue review form to inquire on the amount of revenue raised and invoices raised on a project

Ethe invoice review form to inquire on the amount of revenue raised and invoices raised on project

Correct Answer: C. the Project Summary unbilled receivables and unearned revenue report, which will identify all unearned revenue

Explanation:

Summarize Unbilled Receivables / Unearned Revenue Balances

The summarize unbilled receivables/unearned revenue balances process creates summary data required for running the UBR and UER reports. The process creates summary balances for draft revenue and draft invoices in Oracle Projects. The process summarizes amounts for draft revenues for which the process PRC: Generate Revenue Accounting Events has successfully generated events. The process summarizes amounts for draft invoices that have been transferred, imported, and successfully tied back to Oracle Receivables.

The unbilled receivables and unearned revenue transactions are summarized by project, by account segment, cost center, and GL period, deriving the summary amounts used in the reports.

Question 2

Company ABC wants to deploy workplan task structures where the lowest tasks represent deliverables. They want to collect costs at a level higher than the lowest tasks for groups of deliverables. Which two task structure relationships are available for them to consider?

ADefine the structures as Fully Shared.

BUtilize Task-based mapping structures.

CDefine a separate branch of task hierarchy for deliverables.

DDefine a separate branch of task hierarchy for cost collection.

EDefine the structures as Partially shared.

Correct Answer: B. Utilize Task-based mapping structures.; C. Define a separate branch of task hierarchy for deliverables.

Explanation:

Note:

* You can set up two types of project structures in Oracle Projects:

/ Workplan structures consist of tasks that help project managers and team members plan, track, and deliver projects on time.

/ Financial structures consist of tasks that help project managers and financial administrators track billing, costs, budgets, and other financial information for individual projects.

* If you enable both a workplan structure and a financial structure for your project or project template, you can decide whether or not they are integrated, and if so, to what degree. You do this by choosing one of the following options on the Structures setup page:

/ Shared Structures: Enables you to generate a financial structure with a task hierarchy that is fully shared by the workplan structure task hierarchy. Workplan and financial structures are fully shared by default.

/ Partially Shared Structures: Enables you to generate a financial structure that is partially shared by the workplan structure hierarchy.

/ Non-Shared: Task-Based Mapping: Enables you to map individual workplan structure tasks to individual financial structure tasks.

/ Non-Shared: No Mapping: Choose this if you do not want to integrate your project workplan and financial structures in any way.

Question 3

A customer requires budgetary Integration with General Ledger for what will function as an ''Approved Cost'' budget. The customer also wants project managers to maintain cost budgets derived from the Staffing Plan maintained in the workplan. Which budgeting approach will support this requirement?

AForms based 'Approved Cost' budget and Forms based 'Staffing Plan' budget.

BFinancial Plan-based 'Approved Cost' budget and Financial Plan-based 'Staffing Plan' budget

CForms-based 'Approved Cost' budget and financial Plan-based 'Staffing Plan' budget

DFinancial Plan-based 'Approved Cost' budget and Forms-based 'Staffing Plan' budget

Correct Answer: D. Financial Plan-based 'Approved Cost' budget and Forms-based 'Staffing Plan' budget

Question 4

What type of project will a company require to use Organization Forecasting?

Acontract project

BAdministration Project

COrganization Planning Project

Dcapital project

Emulti-function project

Correct Answer: A. contract project

Explanation:

Note:

* Compute Forecast Labor Revenue

This process calculates the potential revenue of labor expenditure items based on established bill rates and markups. The expenditure items that the process selects are billable labor expenditure items charged to contract projects that have not yet been processed by the Generate Draft Revenue process. The items do not have to be approved to be processed for forecast revenue.

Question 5

An organization posts project costs to the balance sheet as they are incurred. Each month they recognize project revenue on each project. Select the option that ensures that costs are credited from the balance sheet and debited to profit and loss as revenue is recognized.

AUse events for project revenue and use GL journals to carry out the relevant account postings.

BImplement a project revenue extension with appropriate event types and AutoAccounting definition.

CUse miscellaneous transactions to generate revenue with the appropriate AutoAccounting definition.

DUse preapproved batches with a class type of 'Work in Process' to generate revenue with the appropriate AutoAccounting definition.

Correct Answer: B. Implement a project revenue extension with appropriate event types and AutoAccounting definition.

Question 6

Identify two predefined transaction sources that Oracle Projects uses to import the transactions generated within Oracle Projects.

AOracle Interproject Supplier Invoices

BOracle Projects Intercompany Supplier Invoices

CProject Allocations

DCapitalized Interest

EOracle Interprojed Customer Invoices

Correct Answer: C. Project Allocations; D. Capitalized Interest

Explanation:

Oracle Projects uses predefined transaction sources to import project allocations and capitalized interest transactions that it generates internally.

Question 7

Which two options are not task attributes for financial task structure?

ATask Type

BService Type

CWork Type

DChargeable Flag

EScheduled Dates

Correct Answer: B. Service Type; D. Chargeable Flag

Explanation:

Incorrect:

Not A: Task types assign default attributes to tasks and control how Oracle Projects processes tasks. Task types specify basic task attributes.

Not C: Work types represent a classification of work. You use work types to classify both actual and scheduled work.

Not E: Oracle Projects uses start and finish dates to control processing, indicate estimated and scheduled duration, and serve as tools to evaluate project performance.

The start and finish dates at the project level are:

Actual: Actual dates when work on the project started and finished. You can use these dates to drive future timecard and earned value functionality.

(not E) Scheduled: Scheduled start and finish dates for the project.

Target: The expected lifespan of the project.

Estimated: A task manager's estimate of when work on the project will be started and finished.

Baseline: The baselined schedule

Question 8

A company generates revenue at period end, but bills monthly in advance. The customer is invoiced in April with project starting in May and the first project is due to be recognized at the end of May. What are the accounting entries at the end of May?

ADebit: Cost of Goods Sold
Credit: Unbilled Receivables

BDebit: Unearned Revenue
Credit: Revenue

CDebit: Receivable
Credit: Bank

DDebit: Receivable
Credit: Unearned Revenue

EDebit: Bank
Credit: Revenue

Correct Answer: D. Debit: Receivable Credit: Unearned Revenue

Explanation:

Invoice

When you run the program to interface invoices to Oracle Receivables, Oracle Projects runs AutoAccounting to determine the appropriate default accounts. If the invoice fails AutoAccounting, then the program marks the draft invoice with an error. See: Overview of AutoAccounting, Oracle Projects Implementation Guide.

The following table shows entries Oracle Projects creates when the Interface Invoices to Oracle Receivables process is run:

Account Debit Credit

Receivables 200.00

Unbilled Receivables and/or Unearned Revenue 200.00

Oracle Project Billing User Guide

Question 9

Which three types of People Resources does Oracle Projects support?

ATeam Roles

BStraight Time

CJobs

DItem

ENamed Person

Correct Answer: A. Team Roles; C. Jobs; E. Named Person

Explanation:

Note:

* People resources represent named persons or any grouping of named

persons (E) by attributes such as job (C), organization, or role (A), whose time (effort)

capacity is consumed to complete the project work. Example: Amy Marlin

Question 10

Which types of rate schedules should be defined to allow rates to be used to generate financial plans?

AJob Labor Rates Schedule
Non Labor Rate Schedule

BResource Class Schedule
Planning Rate Schedule
Labor Rates Schedule

CResource Class Schedule
Labor Rates Schedule
Non Labor Rate Schedule

DResource Class Schedule
Planning Rate Schedule
Non Labor Rates Schedule

Correct Answer: C. Resource Class Schedule Labor Rates Schedule Non Labor Rate Schedule

Explanation:

Defining Rate Schedules

You can define four types of rate schedules. The following table lists the four types of rate schedules and indicates how you can use each rate schedule type in Oracle Projects.

Note:

* If you select the option to use planning rates, then you can choose the cost and revenue rate schedules to use to generate amounts. If you do not select the option to use planning rates, then Oracle Projects automatically chooses the rate schedules that are used to calculate actual cost and revenue (bill) amounts.

* You must specify rate schedules for resource class. When Oracle Projects is unable to determine the actual or planning rates to apply in a calculation, Oracle Projects automatically applies rates from the default rate schedules you specify for resource class.