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

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What does the year-end closing program in Asset Accounting do?

Checks for errors or incomplete asset master records.
Blocks postings for the closed fiscal years.
Posts remaining depreciation and imputed interest.
Settles all assets under construction.

The correct answer is: Checks for errors or incomplete asset master records.

The year-end closing program in Asset Accounting serves several essential functions to wrap up the fiscal year properly. Among these, one of the critical tasks is to check for errors and ensure that all asset master records are complete. This step is vital because incomplete or erroneous asset records can lead to inaccuracies in financial reporting and impair the integrity of the financial statements. By verifying these records, the program ensures that all assets are correctly reflected in financial reports, which in turn supports accurate financial planning and analysis. While other functions such as blocking postings for closed fiscal years, posting remaining depreciation and imputed interest, and settling all assets under construction are indeed part of the broader year-end closing activities, the specific function of verifying asset master records is foundational. It sets the stage for all subsequent processes, ensuring that the data being worked with is correct and comprehensive before moving further into year-end procedures.