1Z0-1059 Online Practice Questions and Answers

You have defined 3 Contract Identification rules: Rule A, Rule B, and Rule C. You then decide that Rule C needs to be the first rule executed when the "Identify Customer Contracts" process runs.

Which attribute needs to be updated to achieve this objective?

A. Freeze Period

B. Default Classification

C. Source Document Type

D. Priority

Your customer ships machines, and can recognize revenue for each machine after the machine has been delivered to a customer without waiting for complete satisfaction of an entire performance obligation. How would you configure Satisfaction Method (SM) and Satisfaction Measurement Model (SMM) in Revenue Management to recognize revenue for these performance obligations at a point in time?

A. by setting SM to "Allow Partial" and SMM to "Quantity"

B. by setting SM to "Requires Complete" and SMM to "Period"

C. by setting SM to "Requires Complete" and SMM to "Quantity"

D. by setting SM to "Requires Complete" and SMM to "Percent"

E. by setting SM to "Allow Partial" and SMM to "Period"

If the Contract Identification Rules that you defined for your customer did not group the source data into customer as expected, how would you resolve the issue?

A. Delete the source data that was imported into Revenue Management and import new source data.

B. Delete the performance obligations from the relevant contracts through the Manage Customer Contracts Ul.

C. Run the Discard Customer Contracts program for the relevant contracts, define a new, higher-priority Contract Identification Rule, and run The Identify Customer Contracts program again.

D. Delete Contracts from the Manage Customer Contracts Ul.

E. Run the Discard Customer Contracts program for the relevant contracts and run the Identify Customer contracts program again.

What are two major changes when comparing the new revenue recognition guidance under ASC 606 and IFRS 15 versus the old standard?

A. Revenue and performance obligation liabilities are not dependent on billing.

B. Revenue can be recognized for performance obligations only using the "Point in Time" approach.

C. Pricing estimates cannot be used In the absence of pricing data.

D. Expected consideration value is applicable to all industries.

When deciding how to set up the system to recognize revenue, it is important to understand the extent of revenue deferral and the subsequent timing of revenue recognition. Which two statements are true when you

consider that recognition depends on the nature of the contingency? (Choose two)

A. Payment-based contingencies do not always require payment before the contingency can be removed and revenue recognized

B. Time-based contingencies must not expire before the contingency can be removed and revenue recognized

C. Time-based contingencies can expire, but the contingency will have to be removed manually before the revenue is recognized if payment is not due yet

D. Pre-billing customer acceptance clauses require the recording of customer acceptance in the feeder system, or its expiration, before importing into Receivables for invoicing. Customer acceptance or its expiration must occur before the contingency can be removed and the order can be imported into Receivables for invoicing.

E. Post-billing customer acceptance clauses must expire (implicit acceptance), or be manually accepted (explicit acceptance), before the contingency can be removed and revenue recognized.

Which three statements about Effective Periods are true?

A. If effective periods are not defined. Revenue Management uses the General Ledger calendar.

B. Effective Periods are used for standalone selling prices and for creating journal entries.

C. Gaps between periods are not allowed.

D. You cannot have overlapping periods.

E. Effective Periods only define the rage where standalone selling prices of an item should be effective.

Which two are intended uses for the Standalone Selling Price Report Dashboard?

A. Review performance obligations by effective period.

B. Diagnose revenue price profile.

C. Drill down to data used to derive standalone selling prices.

D. Monitor transaction price calculation and allocation.

E. Analyze standalone selling prices for one or multiple effective periods.

The predefined Revenue Contract Account Activities report originally had only one output option of spreadsheet.

Which output option can you now also choose to assist In handling a large number of records?

A. HTML

B. PowerPoint

C. Flat File

D. PDF

Which statement is NOT applicable to Performance Obligation Templates?

A. Oracle delivers three predefined Performance Obligation Templates,

B. Performance Obligation Templates are specific to the business and cannot be predefined.

C. Performance Obligation Templates take precedence over Performance Obligation Rules.

D. Performance Obligation Templates can be associated to a Revenue Price Profile.

What is a Performance Obligation?

A. a combination of customer type and product code

B. a product code or SKU

C. a promise to a customer on which either party has acted

D. a promise to a customer