Untitled Deck

Question 1

What is the definition of Encumbrance?

Answer 1

An accounting term representing expenses anticipated to be charged to a cost center, gift, grant, project, and/or program

In legacy systems, encumbrances are used to track expected expenses.

Question 2

In Workday, how are encumbrances displayed?

Answer 2

As commitments and obligations

This reflects the financial commitments made within the system.

Question 3

What is a commitment (pre-encumbrance) in accounting?

Answer 3

An estimate that can occur on the following processes:
* Requisitions
* Spend Authorizations
* Vacant positions

Commitments represent anticipated expenses before they become actual obligations.

Question 4

What is an obligation (encumbrance) in accounting?

Answer 4

More certain than an estimate and can occur on the following processes:
* Purchase Orders
* Filled positions

Obligations represent confirmed expenses that have been incurred.

Question 5

What is the primary difference between a commitment and an obligation?

Answer 5

• Commitment: Estimated future expenses
• Obligation: Guaranteed expenses

Commitments do not bind the organization to a vendor, while obligations do.

Question 6

What is the purpose of Workday projects?

Answer 6

• Assist with alignment and planning
• Plan and track work
• Define work that aligns with strategic company goals
• Integrate between HCM and FINS

Workday projects help organizations manage their resources and align with strategic objectives.

Question 7

What are the types of projects in Workday?

Answer 7

• Opportunity
• Billable
• Nonbillable
• Capital
• Basic

Each type serves a different purpose in project management and financial tracking.

Question 8

Define an Opportunity project.

Answer 8

Projects not yet approved or sold that can later be converted into a project

Used to prioritize resources and create forecasts.

Question 9

What is a Billable project?

Answer 9

Projects with customer contracts, invoices, and billing

Allows for defining billing rates and recognizing revenue based on project completion.

Question 10

What characterizes a Nonbillable project?

Answer 10

Internal projects that do not invoice customers for work done

Useful for dividing work into phases and tracking costs.

Question 11

What is the purpose of Project Hierarchies?

Answer 11

• Define parent and child relationships
• Categorize projects
• Simplify project creation
• Create detailed reports

Hierarchies help manage project configurations and reporting.

Question 12

What are the two types of Project Hierarchies?

Answer 12

• Primary
• Optional

Primary hierarchies are required for project creation, while optional hierarchies provide additional categorization.

Question 13

What is the role of Project Groups?

Answer 13

An optional field for reporting purposes

A project can belong to multiple groups for better categorization.

Question 14

What can Project Status track?

Answer 14

• Approved
• Completed
• In process

This is a reporting field and does not control functional behavior.

Question 15

What are Project Dependencies?

Answer 15

Define other projects as prerequisites or dependencies

Provides visibility into project details with reporting.

Question 16

What are Project Assignable Roles?

Answer 16

Standard set of job roles for project resources

Workers with roles can see project information.

Question 17

What can Project Risks track?

Answer 17

• Overall risk of a project
• Individual risks to a project
• Mitigating actions

Risk parameters can also be applied during the idea approval process.

Question 18

What do Project Templates do?

Answer 18

• Simplify project creation
• Maintain consistency
• Reduce errors

Templates can prefill common options for users when creating new projects.

Question 19

What is the function of Resource Plans?

Answer 19

• Help staff projects
• Enable workers to charge time against a project

Resource plans can be unique to a project or replicate across a project hierarchy.

Question 20

What aspects can Project Plans organize?

Answer 20

• Project phases
• Project tasks
• Worker assignments
• Timelines
• Risks
• Milestones

Project plans help structure the various components of a project.

Question 21

What are Standard Cost Rates based on?

Answer 21

• Worker attributes
• Job Profile
• Management Level
• Region

Rates are effective dated and can be defined for various parameters.

Question 22

What is the purpose of Fully Burdened Cost Rates?

Answer 22

Determine an hourly cost rate using compensation data

This method accounts for overhead percentages and is used for operational reporting.

Question 23

What does Project Labor Costing allow you to do?

Answer 23

• Prorate salaried and non-salaried labor costs
• Define project cost rates for workers

Costing methods can be secured separately and used for journal entries.

Question 24

What are the differences between a primary PJH and an optional PJH?

Answer 24

Primary PJH is required for project creation; Child hierarchies and projects inherit configuration from primary parent hierarchy.

Optional PJH don’t inherit configuration options from parent PJH. Use optional hierarchies to add more categories to projects for increased granularity in roll-up reports

Question 25

Example of Fabrication Project at OSU

Answer 25

College of Engineering Innovation Lab (product development and research projects that may involve manufacturing techniques including welding, machining, CNC machining, rapid prototyping, and sheet metal work.)

Question 26

Example of Capital Project at OSU

Answer 26

Gilkey Hall Renovation (costly, has costs that depreciate/amortize over time)

Question 27

Top-Side Journal Entry

Answer 27

A journal entry posted manually at the corporate or parent company level to adjust account balances in the general ledger (GL) during the preparation of consolidated financial statements. Unlike routine entries generated by operational systems such as AP or AR, topside entries bypass sub-ledgers, meaning they do not alter the detailed records of individual transactions. These entries are often used to: 1. Correct errors or omissions in previously recorded transactions 2. Adjust balances for consolidation purposes, such as eliminating intercompany transactions 3. Allocate income, costs, or liabilities across subsidiaries 4. Make final adjustments to financial statements after month-end closing Because topside entries bypass standard internal controls and are manually posted, they are considered high-risk for potential manipulation and often 100% tested by auditors.

Question 28

Public Company Accounting Oversight Board (PCAOB)

Answer 28

monitors fraud

Question 29

SBITA

Answer 29

Subscription-based information technology arrangements (SBITAs) are the focus of GASB 96.

Question 30

Fiduciary Fund

Answer 30

The Oregon State University Foundation (OSUF) is responsible for the investment of endowment assets and quasi-endowment investments. The Foundation's investment policies are based on state law and prudent money management, ensuring that the university's funds are invested in a manner that maximizes efficiency and aligns with the university's strategic plan.

Question 31

Explain how OSU uses state bonds

Answer 31

State bonds let Oregon borrow money upfront to build/renew OSU facilities (eg. Gilkey hall renovation), then repay the borrowing over time—often using state appropriations (and, in some cases, dedicated state revenues). OSU proposes projects into the state’s capital planning process, and the state issues debt for approved projects.

Question 32

Main considerations / tradeoffs with state bonds

Answer 32

Approval & competition: OSU projects must compete with other statewide needs; timing can be uncertain. Debt must be repaid: Bonds are not free money—repayment plus interest affects future state budgets. Bond rules are strict: Money must be spent on the approved capital purpose, with compliance and reporting. Operating costs after construction: New/renovated space can increase ongoing costs (staffing, maintenance, utilities). Scheduling risk: If bond timing or approvals shift, construction schedules and costs can be impacted.

Question 33

High School Equivalency Program (HEP)

Answer 33

A federally funded initiative designed to support migrant and seasonal farmworkers and their children in obtaining the equivalent of a high school diploma. The program aims to assist these students in enrolling in, completing their GED, and continuing in postsecondary education or training programs, ultimately leading to better employment opportunities.

Question 34

Auxiliary (short for auxiliary enterprise)

Answer 34

Means a university activity that works like a self-funded business: it mainly pays its own costs using fees it charges users, rather than relying on state tax dollars. Ex: housing and dining (they charge students housing fees and use those to fund operations), bookstore (sales revenue funds operations) , athletics

Question 35

ACP: what it does and when it matters

Answer 35

If a journal hits a grant, ACP triggers grant accounting and creates two additional journals; no impact without grants.

Question 36

escheatment

Answer 36

unclaimed property liability (ex. uncashed payroll checks, overpaid student tuition, student account credit, vendor payments, prepaid dining cards) that OSU needs to hand over to the state for compliance

Question 37

In Workday, all accounting entries are tied to a ____. _____ defines where transactions are accounted for inside the general ledger.

Answer 37

Book code

Question 38

In Workday, most transactions are recorded in the ___ book code or the ___ book.

Answer 38

blank; Common

Question 39

A Book combines activity from one or more ____, including the Blank Book Code.

Answer 39

Book Codes. A Book Code can belong to multiple Books.

Question 40

Asset Book Allows an asset to be depreciated differently to meet various reporting requirements. An Accounting Asset Book posts to (how many) Book Code.

Answer 40

only one (Asset Accounting)