Identify the three true statements about accounts and account types.
A.
Financial Management provides predefined account types such as Asset, Revenue, Flow,
Balance, and Dynamic.
B.
Account types tell FM how the child account should aggregate to the parent.
C.
Account types tell FM how the account balances should accumulate over time.
D.
Base level accounts do not automatically roll up to parents; business rules are required.
E.
Children cannot inherit the account type of their parent unless specifically defined by the
administrator.
Explanation:
“Each account has an account type. Account types determine how child accounts are aggregated
to parent accounts and how account balances accumulate over time.”
Above is an explanation about account types directly from the HFM Admin guide published by
Oracle.
Additionally, this is true because Asset and Liability account types are balance sheet accounts and
they represent a balance at a point in time. So, whether you look at the amount in these accout
types as periodic, QTD or YTD, the value is the same as it is not a cumlative amount.
The Revenue and Expense account types are income statement accounts and therefore the QTD
and YTD amounts are an accumulation of the Periodic amounts.