Exam C_TS4FI_2020 topic 1 question 2 discussion

Depreciation Area and Asset class should be the correct answer

A and D are correct answers

the two elements that most accurately define the integration of asset acquisitions with the general ledger are: ● A. Asset Class: The asset class plays a fundamental role in connecting asset acquisitions with the general ledger. ○ It determines the account determination used to assign the correct G/L accounts for recording acquisition costs and subsequent depreciation. ○ The asset class also dictates how the asset is categorized (e.g., as an AUC or LVA), which directly impacts the accounting treatment of acquisition costs. ● D. Depreciation Area: Depreciation areas are critical for ensuring asset acquisitions align with various accounting principles. ○ Each depreciation area represents a specific accounting principle and is linked to a corresponding ledger. ○ This ensures that the acquisition is recorded in the correct ledger and G/L accounts based on the relevant accounting rules.

Yes, Depreciation Area and Asset class should be the correct answers

A. Asset class C. Valuation area Should be correct answer