SAP Financial Accounting (SAP FI) Practice Exam

What is the relationship between an asset class and its master records?

1. An asset class can have multiple master records

2. Each asset class is independent of master records

3. Master records control the asset class settings

4. Every master record must be unique to an asset class

The correct answer is: An asset class can have multiple master records

In SAP FI, the asset class is a key organizational unit that groups together similar types of assets and governs how these assets are managed within the system. Each asset class is defined by specific characteristics, such as depreciation methods, tax treatment, and reporting requirements. The correct choice states that an asset class can have multiple master records. This is because an asset class serves as a template for various individual assets that fall under that classification. Each of these individual assets has its own unique master record, which contains specific details like asset number, description, acquisition cost, and other attributes. Therefore, multiple assets can share the same asset class, but each one holds a distinct master record. This design allows for a more structured approach to handling asset data and simplifying reporting and analysis. The other options do not accurately reflect the nature of the relationship between asset classes and master records. Each asset class being independent of master records contradicts the reliance on master records for tracking specific asset information. Similarly, while master records do reference asset class settings, they do not control them; rather, the settings are predetermined by the asset class itself. Lastly, stating that every master record must be unique to an asset class is misleading, as while master records are unique, they can belong to the