Question 1

Item Code AB1234 is controlled by the FIFO valuation method.

When this item is issued out of the warehouse, which layer does the system choose first?

AThe layer selected by a user

BThe oldest available layer

CThe layer with the lowest cost

DThe layer with the smallest quantity

Answer : B

Question 2

What is a requirement for a profit and loss account?

AThe balance has to be carried forward from one fiscal year to the next fiscal year.

BIt must be set as a cash account.

CThe balance has to be cleared at the end of each fiscal year.

DIt must be located in the first three drawers of the chart of accounts.

Answer : C

Question 3

The accountant added a new G/L account for employee bonuses. In the journal entry window, this new account does NOT appear in the list of accounts.

What could be the reason?

AThe new account is defined as relevant for cost accounting.

BThe new account was defined as a title.

CThe new account was placed in the wrong drawer.

DThe new account type is set to Other.

Answer : B

Question 4

In the customer's business process, the sales manager needs to be Informed of any discount over 5%. Any discount over 10% requires sign-off by a Vice President (VP).

How can you set this up?

ASet up a user alert with a query for the two conditions, and specify the sales manager and the VP as recipients.

BDefine an approval process with wo stages, one for the sales manager and one for the VP.

CSet up a standard alert for the sales manager and define an approval process for the VP sign-off.

DDefine an approval process with two conditions (5% and 10%) and include the sales manager and the VP as approvers.

Answer : C

Question 5

An A/R invoice was added to the system but an inventory transaction was NOT created.

What could be the reasons?

AThe invoke is based on a delivery document

BThe items in the invoice are missing the unit of measure group

CThe in-stock quantity of the items falls below the minimum level

DThe customer has exceeded their credit limit

Answer : A

Free Practice Questions for SAP C_TB120_2504 Exam

Question 1

Question 2

Question 3

Question 4

Question 5