Knowledge check

Choose the best response for each of the questions.

Check your knowledge

Select the sentence that best describe financial dimensions.

Financial dimensions make it difficult to adjust the Chart of Accounts (COA).

Financial dimensions are the building blocks of the account structure but are static in nature and can't be modified once established.

Financial dimensions page the segments in your accounting structure and are critical for reporting purposes.

What is the purpose of setting up different journal names in Finance?

To ensure data entry for each purpose and for reporting purposes.

To categorize transactions based on their monetary value.

To track the employees who are making the transactions.

What is the purpose of foreign currency revaluation in Finance?

Foreign currency revaluation is used to adjust the balances of general ledger accounts in foreign currencies due to exchange rate fluctuations.

Foreign currency revaluation is used to maintain a fixed exchange rate for all transactions.

Foreign currency revaluation is used to eliminate the need for multi-currency transactions in day-to-day business.

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