Oracle Financials Cloud: General Ledger 2017 Implementation Essentials — Question 58

When you move revenue on an invoice line from an unearned account to an earned revenue account, Receivables ______________.

Answer options

• A. removes the invoice line revenue contingencies
• B. leaves the invoice line revenue contingencies until Automatic Revenue Recognition is run
• C. removes the pending sales credits
• D. leaves the invoice line revenue contingencies until Reconcile Revenue Contingencies is run

Correct answer: A

Explanation

The correct answer is A, as moving revenue to an earned account clears the revenue contingencies associated with that invoice line. Options B and D incorrectly state that contingencies remain until specific processes are run, which is not the case in this scenario. Option C is unrelated to the question and does not pertain to revenue contingencies.