BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Define a valuation area and extension ledger to link with the new valuation area
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Define two valuation methods and assign the accounting principles to the new valuation methods
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Define a valuation area and ledger group for two ledgers to link with the new valuation area
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Define two valuation areas and two accounting principles with relevant links to ledgers
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Detailed explanation-1: -Definition. Cross-chart of accounts specification that contains the valuation approach to be used for carrying out a foreign currency valuation as part of the closing operations, for example, according to the lowest value principle.
Detailed explanation-2: -You have the following options for the foreign currency valuation: You can perform the valuation in local currency, (company code currency), or a parallel currency (for example, group currency). You can also use different valuation methods (for example, lowest value principle).
Detailed explanation-3: -To summarize, with the ledger approach, you post to the same accounts in different ledgers whereas, with the account approach, you post to different accounts in the same ledger.