SAP Financial Accounting (SAP FI) Practice Exam

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Study for the SAP Financial Accounting (SAP FI) Exam. Use flashcards and multiple choice questions with hints and explanations to enhance learning and comprehension. Prepare thoroughly for your certification test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the role of a customer/vendor master record?

To track employee performance
To store essential information about customers and vendors
To monitor company-wide financial policies
To maintain inventory data

The correct answer is: To store essential information about customers and vendors

The primary role of a customer/vendor master record is to store essential information about customers and vendors. This includes critical data such as names, addresses, payment terms, bank details, and transaction preferences, which are vital for efficient business operations. This information enables businesses to manage their relationships with customers and vendors more effectively. For example, having accurate contact data ensures communication is streamlined, while detailed payment terms help manage cash flow and financial planning. The master records also facilitate the creation of invoices and streamline the processing of financial transactions, contributing to the overall efficiency of the financial accounting processes within an organization. While tracking employee performance, monitoring financial policies, and maintaining inventory data are all important functions within business operations, they do not pertain to the specific purpose of customer/vendor master records. Hence, option B is the most appropriate choice.