BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Business Area
|
|
|
Company Code
|
|
|
Chart of Accounts
|
|
|
Credit Control Area
|
Detailed explanation-1: -A business area is an organizational unit of external financial accounting that represents a separate area of operations or responsibilities within an organization, and to which value changes recorded in Financial Accounting can be allocated.
Detailed explanation-2: -The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses.
Detailed explanation-3: -SAP Definition – Smallest organizational unit of external accounting for which a complete, self-contained set of accounts can be created.
Detailed explanation-4: -The following organizational units are mandatory to define in SAP FI – Client, company code, and credit control area. The company, business area, functional area, and profit center are optional organizational units in SAP.
Detailed explanation-5: -The economic entity principle is a foundational concept in accounting that requires business entities to be treated as separate legal and financial entities. This means that all financial transactions of the company should be recorded separately from those of the owner.