Question 1

What is the significance of the Account Type for any given account?

Accepted Answer

C

Explanation: In NetSuite, the value chosen in the Account Type field classifies the account as asset, liability, equity, income, expense, etc. That classification automatically places the account in the corresponding default section of standard financial statements (Balance Sheet or Income Statement sub-sections). NetSuite’s general-ledger engine uses this value to know where the account appears on reports and how its debit/credit balance is treated. Account Type does not influence subsidiary assignment, exchange-rate selection, or user security; those are controlled by separate fields and role/permission settings.

Question 2

which statement is true about assigning a billing schedule to an item record?

Accepted Answer

D

Explanation: Assigning a billing schedule on the item record makes that schedule the item’s default. When the item is added to a sales order, the Billing Schedule field on that line is automatically populated with the item’s default schedule, though users may still override it. The assignment has no effect on other lines or on other items in the same transaction.

Question 3

Which two account types can be used to Pay Vendor Bills? (Choose two)

Accepted Answer

A, D

Explanation: In NetSuite, when creating a vendor bill payment transaction, the system requires the user to select the source account from which the funds are being disbursed. The "Account" field on the Bill Payment page is specifically filtered to display only accounts of certain types. Official NetSuite documentation confirms that only Bank accounts (for payments via check, EFT, or other cash disbursements) and Credit Card accounts (for payments made using a company credit card) are available for selection to pay vendor bills. These account types represent the sources of funds used to settle the liability recorded by the vendor bill.

Question 4

Which two statement are true about setting up the intercompany expense allocation (choose 2)

Accepted Answer

B, C

Explanation: NetSuite’s Intercompany Expense Allocation schedule is defined for one “source subsidiary”; that single subsidiary’s expenses are re-distributed. On the Lines sub-tab you may enter several “destination subsidiaries,” each with its percentage or weight, so the target can be multiple subsidiaries. Therefore option B (multiple targets) and option C (one source) are true; the opposite statements (A, D) are false.

Question 5

What is the order of steps for the NetSuite standard accounts receivable process?

Accepted Answer

A

Explanation: In NetSuite’s standard Order-to-Cash (accounts-receivable) lifecycle, a sales order that requires approval moves through three system-defined statuses: 1. Pending Approval – user approves the Sales Order. 2. Pending Fulfillment – warehouse fulfills (ships) the order, creating an Item Fulfillment record. 3. Pending Billing – finance bills the Sales Order, which generates the customer Invoice (A/R). Thus the correct sequence is: Approve Sales Order → Fulfill Sales Order → Bill Sales Order, exactly as shown in option A.

Question 6

When Vendor credits auto-apply, which vendor bills are they applied to?

Accepted Answer

B

Explanation: In NetSuite, clicking Auto Apply on the Apply sub-tab of a Vendor Credit causes NetSuite to allocate the credit beginning with the oldest open vendor bills (by transaction date) and continues chronologically until the credit amount is exhausted. No other prioritization—such as balance size or newest bill—is used.

Question 7

Which two options should be selected to create a memorized transaction for the electric bill, which varies in amount each month but will continue until canceled?

Accepted Answer

A, D

Explanation: Because the bill amount changes, the memorized transaction must prompt the user each month instead of posting automatically; therefore set Action = Reminder. Since the payment should recur until the user stops it, set the recurrence to Indefinite rather than a fixed “Number Remaining.”

Question 8

Which statement is true about the Period Close Checklist?

Accepted Answer

D

Explanation: The Period Close Checklist is dynamically generated by NetSuite; it shows only the tasks that are relevant to the accounting features and modules that are turned on in that specific account (e.g., Multi-currency, Projects, Inventory). NetSuite Help explicitly states that “the tasks that appear on the Period Close Checklist depend on the features that are enabled in your account.”

Question 9

A sales order should be billed when certain key project tasks have been completed

Accepted Answer

C

Explanation: NetSuite’s Fixed Bid – Milestone project type is designed so the customer is invoiced only when predefined milestones—commonly represented by key project tasks—are reached. Each milestone holds a fixed amount; once the related task is marked complete, the billing engine releases that amount to the sales order for invoicing. This precisely matches the requirement that “a sales order should be billed when certain key project tasks have been completed.”

Question 10

Which two statements are true about Vendors in a One World account? (Choose two.)

Accepted Answer

A, D

Explanation: In a NetSuite OneWorld account, a single vendor record can be configured to support operations across multiple business units and currencies. A vendor can be associated with a primary subsidiary and then shared with multiple other subsidiaries, enabling centralized vendor management while allowing for subsidiary-specific transactions. This multi-subsidiary assignment is a core feature of OneWorld. Furthermore, to facilitate international commerce, a vendor record can be set up to accept transactions in multiple currencies. This is managed on the 'Currencies' subtab of the vendor record, where different transaction currencies can be added in addition to the vendor's primary currency.

Question 11

Bank accounts interact with subsidiaries?

Accepted Answer

D

Explanation: In NetSuite OneWorld each Bank Account record contains a single-select Subsidiary field. NetSuite Help states that a bank account “belongs to one subsidiary” and “cannot be shared with other subsidiaries.” Therefore every bank account must be linked to exactly one subsidiary.

Question 12

What are two considerations for managing multiple fiscal calendars? Choose two

Accepted Answer

A, C

Explanation: NetSuite OneWorld lets you define more than one fiscal calendar. Accounting periods are generated independently for each calendar, and any single calendar can be assigned to several subsidiaries; however, every subsidiary can have only one calendar unless Multi-Book Accounting is enabled. Thus, considerations include (A) creating periods separately for every calendar and (C) the ability for one calendar to serve multiple subsidiaries.

Question 13

What are two considerations for managing multiple fiscal calendars? (Choose 2)

Accepted Answer

A, B

Explanation: NetSuite’s Multiple Fiscal Calendars feature lets you associate one fiscal calendar with several subsidiaries in the same accounting book. Each calendar keeps its own independent table of accounting periods; therefore, periods must be generated separately for every fiscal calendar and are never shared between calendars.

Question 14

When entering a journal, which two boxes must be used to reverse the journal entry next month, so that the reversal is not created until then? (Choose Two)

Accepted Answer

B, E

Explanation: In NetSuite, to have the system generate a reversing journal entry next month (rather than immediately), you must: 1. Select Defer Entry – this tells NetSuite to wait before creating the reversing entry. 2. Specify the Reversal Date – the future date (e.g., first day of the next month) on which the reversal will be created and posted. The combination of these two fields defers creation until the indicated date, satisfying the requirement.

Question 15

What two transactions cause a Bill Variance journal entry to be posted?

Accepted Answer

A, E

Explanation: When the accounting preference “Post Vendor Bill Variances” is enabled, NetSuite automatically creates a Bill Variance (Purchase-Price-Variance) journal entry at two moments: 1. Item Receipt – inventory is capitalized at standard cost; the variance between standard cost and PO rate is posted to the PPV-Clearing account. 2. Vendor Bill – NetSuite compares the vendor-bill amount to the PO/item-receipt amount; any remaining variance is posted from PPV-Clearing to the final PPV account. No variance is generated on Bill Payment, Purchase Orders, or Requisitions because those events do not affect inventory valuation or expense recognition.

Free NetSuite NetSuite-Financial-User Actual Exam Questions