C_TS4FI Financial Accounting Practice Question
A financial accountant is creating a new G/L account in SAP S/4HANA. The account will be used for balance sheet reporting and must be able to carry forward balances. Which field in the G/L account master record controls whether the account is a balance sheet account or a profit and loss account?
⚠ Common exam trap
Watch out — candidates often confuse the account group or P&L statement account type with the balance sheet account indicator, which directly controls carry-forward behavior.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
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Balance Sheet Account
The 'Balance Sheet Account' indicator in the G/L account master record is the definitive control for whether an account is a balance sheet account or a P&L account. When this indicator is set, the account balance is carried forward to the next fiscal year; otherwise, it is a P&L account and its balance is closed at year-end. This setting is crucial for correct financial reporting and year-end closing.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Account Group
Why it's wrong here
The account group determines the number range and field status for the G/L account, but it does not define whether the account is a balance sheet or P&L account. Account groups are used for structuring and controlling master data maintenance, not for financial statement classification. This field is important for master data governance but not for the balance sheet/P&L distinction.
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Reconciliation Account Type
Why it's wrong here
The 'Reconciliation Account Type' field is used for reconciliation accounts that link subledgers (like customers, vendors, assets) to the G/L. It indicates the type of subledger, but it does not determine if the G/L account itself is a balance sheet or P&L account. This field is for integration and is not the primary control for carry-forward.
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Balance Sheet Account
Why this is correct
In SAP S/4HANA, the 'Balance Sheet Account' indicator in the G/L account master record (on the 'Control Data' tab) determines whether the account is a balance sheet account. If selected, the account balances are carried forward to the next fiscal year. If not selected, it is treated as a P&L account, and balances are closed to retained earnings. This is the correct field.
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P&L Statement Account Type
Why it's wrong here
The 'P&L Statement Account Type' field is used for reporting purposes, such as assigning accounts to specific lines in financial statements. It does not control the fundamental balance sheet vs. P&L classification. This field is optional and used for financial statement version assignments, not for determining carry-forward behavior.
About these practice questions
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official SAP exam blueprint
This C_TS4FI practice question is part of Courseiva's free SAP certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the C_TS4FI exam.