MB-920 Practice Test 10 — 10 Questions

Question 1

You are a finance manager at Contoso Ltd. The company is implementing Dynamics 365 Finance and needs to set up the chart of accounts. Which TWO statements about the chart of accounts are correct?

Accepted Answer

The chart of accounts is the foundation for financial reporting.. Option B is correct because the chart of accounts defines the structure of all main accounts used to record financial transactions, and it directly drives the general ledger, trial balance, financial dimensions, and all financial statements and reporting in Dynamics 365 Finance. Option E is correct because main accounts in Dynamics 365 Finance are stored in a shared chart of accounts table and can be referenced by multiple legal entities, allowing a consistent account structure across organizations while each legal entity maintains its own balances. Option A is incorrect because posting profiles are required to determine which main accounts are used for specific transaction types (such as customer, vendor, and inventory postings); without them, transactions cannot be posted correctly. Option C is incorrect because Dynamics 365 Finance does not limit a chart of accounts to 100 main accounts; the practical limit is far higher (tens of thousands of accounts). Option D is incorrect because main accounts are not created automatically when a legal entity is created; they must be created manually or imported into the chart of accounts.

Answer

Posting profiles are optional for posting transactions.

Answer

A chart of accounts can contain a maximum of 100 main accounts.

Answer

Main accounts are automatically created when a legal entity is created.

Question 2

A company is implementing Dynamics 365 Customer Service and wants to use Copilot to improve agent productivity. Which TWO actions can Copilot perform in the customer service workspace?

Accepted Answer

Draft an email response to a customer based on the conversation context. Option C is correct because Copilot in Dynamics 365 Customer Service can generate a draft email reply using the context of the ongoing conversation, which agents can then review and edit before sending. Option E is correct because Copilot can produce a case summary that highlights key details, customer interactions, and history when an agent opens a case, helping them get up to speed quickly. Option A is not correct because automatic case creation from incoming email is handled by rule-based automation such as automatic record creation and update rules, not by Copilot. Option B is not correct because generating a knowledge article from a resolved case is not a Copilot capability in the customer service workspace. Option D is not correct because scheduling a follow-up call requires agent action or workflow automation, not Copilot.

Answer

Create a new case automatically when an email arrives

Answer

Create a knowledge article from a resolved case

Answer

Schedule a follow-up call with the customer

Question 3

An organization using Dynamics 365 Finance implements AI-driven cash flow forecasting. What data source does the feature primarily use?

Accepted Answer

Historical transaction data. Dynamics 365 Finance's AI-driven cash flow forecasting primarily uses historical transaction data — past customer payments, vendor invoices, and cash movements — to train models that predict future cash positions. This historical data provides the patterns and seasonality the AI needs to generate forecasts. External balances and budgets can supplement, but the core input is historical transactions.

Answer

External bank account balances

Answer

Vendor payment history

Answer

Budget and forecast data

Question 4

A warehouse manager wants to optimize picking routes by grouping orders that are located in the same aisle. Which feature in Dynamics 365 Supply Chain Management should be configured?

Accepted Answer

Wave management. Wave management in Dynamics 365 Supply Chain Management is the correct feature because it allows grouping of orders into waves based on criteria such as location or aisle, enabling optimized picking routes. By configuring wave templates and methods, the system can automatically consolidate orders from the same aisle into a single wave, reducing travel time and improving warehouse efficiency.

Answer

Inventory status

Answer

Location directives

Answer

Mobile device menu items

Question 5

Which TWO of the following are capabilities of Dynamics 365 Supply Chain Management?

Accepted Answer

Transportation management. Transportation management (B) is a core capability of Dynamics 365 Supply Chain Management, providing inbound and outbound load planning, rate and route configuration, carrier management, and freight reconciliation through the Transportation management module. Demand forecasting (C) is also a native Supply Chain Management capability, delivered via master planning and the Demand forecasting feature that uses historical data and Azure Machine Learning to generate item-level forecasts consumed by planning runs. Customer relationship management (A) belongs to Dynamics 365 Sales/Customer Engagement, not Supply Chain Management. Project accounting (D) is provided by Dynamics 365 Project Operations (and previously Finance project management and accounting), not as a Supply Chain Management capability. Human resources management (E) is delivered by Dynamics 365 Human Resources, so it is not part of Supply Chain Management.

Answer

Customer relationship management

Answer

Project accounting

Answer

Human resources management

Question 6

You are configuring a landed cost voyage. The company wants to ensure that the goods are tracked as in-transit inventory from the time they leave the port of loading. Which element in the exhibit enables this?

Accepted Answer

GoodsInTransitOrder. The GoodsInTransitOrder element enables tracking of goods as in-transit inventory from the time they leave the port of loading. This element in the landed cost voyage configuration specifies the order that represents the in-transit inventory, allowing the system to track and value goods while they are in transit.

Answer

PortOfLoading and PortOfDischarge

Answer

VoyageId

Answer

CostType and Amount

Question 7

A company needs to generate financial statements that comply with local accounting standards in multiple countries. Which Dynamics 365 Finance module should be used to define and manage these reporting requirements?

Accepted Answer

Financial reporting. The Financial reporting module in Dynamics 365 Finance is specifically designed to define, generate, and manage financial statements and regulatory reports, including support for multiple accounting standards and localized reporting formats. It provides row definitions, column definitions, and reporting trees that let organizations produce GAAP, IFRS, or country-specific statements from the same general ledger data. This makes it the correct module for multi-country compliance reporting.

Answer

Budgeting

Answer

General ledger

Answer

Accounts payable

Question 8

A multinational corporation uses Dynamics 365 Finance to manage its financial consolidation across multiple subsidiaries with different currencies. The consolidation must adhere to local GAAP and IFRS. The finance team needs to perform consolidation with elimination of intercompany transactions automatically. What is the most efficient way to achieve this?

Accepted Answer

Set up a consolidation company and use elimination rules. Setting up a consolidation company and configuring elimination rules is the standard Dynamics 365 Finance approach for multi-subsidiary consolidation with automatic intercompany elimination. The consolidation company receives translated balances from source legal entities, and elimination rules automatically remove intercompany transactions and balances during the consolidation run.

Answer

Use the General ledger consolidation process and manually eliminate intercompany transactions

Answer

Use the Budget control module to track intercompany balances

Answer

Configure financial reporting with a reporting tree and currency translation

Question 9

A company is evaluating Dynamics 365 Supply Chain Management for its complex manufacturing process that involves both discrete and process manufacturing. Which capability should they use to handle the co-products and by-products generated during production?

Accepted Answer

Process manufacturing. Process manufacturing in Dynamics 365 Supply Chain Management is designed for formula-based production where co-products and by-products are generated. It supports batch orders, formulas, and the ability to define and cost co-products and by-products that result from a production process.

Answer

Lean manufacturing

Answer

Product configuration

Answer

Discrete manufacturing

Question 10

A company uses Dynamics 365 Finance and needs to enforce that purchase orders over $10,000 require approval from the finance manager. What is the most efficient way to configure this?

Accepted Answer

Create a purchase order approval workflow with a condition on amount.. Creating a purchase order approval workflow with a condition on amount is the most efficient way to enforce that POs over $10,000 require finance manager approval. Workflow automates the approval process, ensuring that only POs meeting the condition are routed for approval, and it provides a consistent, auditable process.

Answer

Configure budget control to restrict spending.

Answer

Manually notify the finance manager for high-value POs.

Answer

Set up a vendor invoice policy.