SAP Financial Accounting (SAP FI) Certified Application Associate Practice Exam

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True or False: Managerial closing activities include locking the old accounting period.

False
True
Not applicable
Depends on the context

The correct answer is: True

Managerial closing activities are essential processes that organizations perform at the end of an accounting period to ensure accurate financial reporting and management decision-making. Locking the old accounting period is a key part of this process as it prevents any further changes to transactions that were recorded during that time. By locking the period, organizations maintain the integrity of their financial data, which is crucial for generating reliable financial statements and reports. This action ensures that all figures are final and helps to avoid discrepancies that could arise from any post-closing adjustments. As such, stating that locking the old accounting period is part of managerial closing activities is accurate and reflects standard practices in financial management within SAP systems.