Question

38. What can occur if you don’t set a fiscal year closing date?

a. The tax returns may need to be amended.

b. Accounting data in prior periods can be modified.

c. The Audit Trail won’t show changes made by users.

d. You won’t be able to change non-posting transactions.

Answer 1

Solution:

B) Accounting data in prior periods can be modified.

Fiscal Year Closing period based a lock date.User can't able to create entry based on cut-off date but user can able to see all the accounts and transactions. If we are not setting a closing date , Data's can be modified at any time.

Rest of the options are not true supposed to the absence of fiscal year closig date. Daily or monthyly data is enough to identify the changes. Tax periods won't amend , you can able to changs non posting transactions.