Oracle E-Business Suite R12.1: Payables Essentials — Question 2

The rate variance Gain/Loss accounts specified in the Financial Options - Accounting region are used to account for _____.

Answer options

• A. exchange rate variance in invoices and payments
• B. invoice price variance in purchase orders and invoices
• C. exchange rate variance for expense items in purchase orders and invoices
• D. exchange rate variance for inventory items in purchase orders and invoices

Correct answer: D

Explanation

The correct answer is D because it specifically addresses how exchange rate variances apply to inventory items within purchase orders and invoices. Options A and C relate to invoices and expense items, which do not pertain to inventory. Option B focuses on invoice price variance, which is a different accounting aspect entirely.