SAP Financial Accounting (SAP FI) Practice Exam

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What are the two account assignment types in asset accounting?

Development and production
Acquisition and production
Acquisition and retirement
Production and amortization

The correct answer is: Acquisition and production

The correct answer highlights the two key account assignment types in asset accounting, which are acquisition and production. Acquisition refers to the initial purchase or procurement of fixed assets. This includes expenses related to acquiring tangible or intangible assets that are necessary for the operation of a business. When an asset is acquired, accounting entries are made to recognize the asset value on the balance sheet and, if applicable, record the associated costs such as taxes, shipping, and installation. Production, on the other hand, relates to assets that are created or produced in-house rather than purchased externally. This is relevant for businesses that manufacture their own equipment or develop their own software. The costs incurred during the production process are capitalized as they contribute to the value of the asset being created. Recognizing these two account assignment types is essential for accurately reporting fixed assets and understanding the costs involved in asset management within the context of SAP Financial Accounting.