1Z0-1080-26 practice question 18 of 25

Which three features would you need to enable in order to perform indirect cash flow statement planning?

Full set: 118 questions
Answer options
A: Balance Sheet Correct answer
B: Income Statement Correct answer
C: Revenue
D: Cash Flow Statement Correct answer
E: Expense
Correct Answer:
A. Balance Sheet; B. Income Statement; D. Cash Flow Statement
Explanation

The indirect method of cash flow planning is fundamentally derived from the Income Statement and Balance Sheet. It begins with Net Income (from the Income Statement) and adjusts for non-cash expenses and changes in working capital accounts (from the Balance Sheet). The final output is the Cash Flow Statement itself. Therefore, to perform indirect cash flow planning within the Oracle EPM Financials module, you must enable the Income Statement, Balance Sheet, and Cash Flow Statement features as they are interdependent for this specific planning method.

Why Incorrect

C. Revenue: This is a sub-component of the Income Statement. Enabling the Income Statement feature is the required, higher-level action that encompasses revenue planning.
E. Expense: This is a sub-component of the Income Statement. Enabling the Income Statement feature is the required, higher-level action that encompasses expense planning.

References

1. Oracle Cloud EPM, Administering Planning for Oracle Enterprise Performance Management Cloud, "Enabling Financials Features". This section states, "To enable Cash Flow, you must also enable Income Statement and Balance Sheet."

2. Oracle Cloud EPM, Working with Planning for Oracle Enterprise Performance Management Cloud, "About Financials". This chapter describes the integrated nature of the three financial statements within the module.

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