MB-920 Practice Test 20 — 15 Questions

Question 1

A company uses Dynamics 365 Finance and plans to implement Copilot for Finance to automate vendor invoice processing. Which prerequisite must be configured to enable AI-powered invoice matching?

Accepted Answer

AI Builder enabled with Power Apps license. Copilot for Finance leverages AI Builder for AI-powered invoice matching, and AI Builder requires a Power Apps license to be enabled. Option A is incorrect because electronic reporting formats are used for document generation, not for AI matching. Option B is incorrect because workflow for invoice approval is a process control feature, not a prerequisite for AI. Option D is incorrect because data entities are for data import/export, not for enabling AI capabilities.

Answer

Electronic reporting format for invoices

Answer

Workflow for invoice approval

Answer

Data entities configured for import/export

Question 2

A company wants to automate the reconciliation of bank transactions with general ledger entries in Dynamics 365 Finance. Which feature should they use?

Accepted Answer

Advanced bank reconciliation. Advanced bank reconciliation automatically matches bank transactions with general ledger entries, automating the reconciliation process. Option A is wrong because cash flow forecast is used to predict future cash flows, not reconcile transactions. Option B is wrong because budget control enforces budget limits, not reconciliation. Option C is wrong because payment proposal generates payments to vendors, not reconciles bank transactions.

Answer

Cash flow forecast

Answer

Budget control

Answer

Payment proposal

Question 3

Refer to the exhibit. A sales order in Dynamics 365 Finance has a line discount of 10% and a header discount of 5%. What is the net amount for the line item after both discounts?

Accepted Answer

$1,282.50. First apply line discount: 10 * 150 = 1500, minus 10% = 1350. Then apply header discount: 1350 minus 5% = 1282.50.

Answer

$1,500.00

Answer

$1,425.00

Answer

$1,350.00

Question 4

A company wants to use AI to automatically classify vendor invoices in Dynamics 365 Finance. Which feature should be enabled?

Accepted Answer

Invoice capture. Invoice capture in Dynamics 365 Finance uses AI to automatically classify vendor invoices. Option A is incorrect because Intelligent order management is for sales orders, not invoices. Option B is incorrect because Vendor collaboration is a portal for vendor communication, not AI classification. Option C is incorrect because OCR is a technology used within Invoice capture, but the feature itself is Invoice capture.

Answer

Intelligent order management

Answer

Vendor collaboration

Answer

Optical character recognition (OCR)

Question 5

A company uses Dynamics 365 Finance and wants to automate the calculation and posting of daily interest on overdue customer invoices. Which feature should be configured?

Accepted Answer

Interest codes. Interest codes define the interest calculation rules. Collection letters are for dunning. Customer posting profiles define posting accounts. Payment schedules define installment plans.

Answer

Payment schedules

Answer

Collection letters

Answer

Customer posting profiles

Question 6

Which TWO actions can you perform using the Financial Reporting tool in Dynamics 365 Finance?

Accepted Answer

Combine data from multiple legal entities in a single report. Options A and E are correct. Financial Reporting can produce balance sheets and income statements (E) and can combine data from multiple legal entities using reporting trees (A). Option B is incorrect because configuring payment terms is done in Accounts payable, not in Financial Reporting. Option C is incorrect because configuring budget control rules is a separate feature in Budgeting. Option D is incorrect because posting journal entries is a general ledger function.

Answer

Configure payment terms for vendors

Answer

Configure budget control rules

Answer

Post journal entries to the general ledger

Question 7

A company uses Dynamics 365 Finance. The accounts payable team needs to automatically calculate discounts based on payment terms when entering vendor invoices. Where should they configure the discount?

Accepted Answer

Payment terms. Cash discounts are configured at the vendor payment terms level and automatically applied during invoice entry. Option B is wrong because procurement categories are for item classification, not discounts. Option C is wrong because invoice policies are for approval, not discounts. Option D is wrong because vendor master only stores company details.

Answer

Procurement categories

Answer

Invoice policies

Answer

Vendor master

Question 8

A company uses Dynamics 365 Finance and wants to automate the generation of financial statements like balance sheets and income statements. Which tool should they use?

Accepted Answer

Financial reporting. Financial reporting is the dedicated tool for creating financial statements like balance sheets and income statements in Dynamics 365 Finance. Option A is wrong because Management reporter is a separate legacy tool, but Financial reporting is the primary tool in D365 Finance. Option B is wrong because Power BI requires integration and is not specifically designed for financial statements. Option D is wrong because Excel integration requires manual work and is not a dedicated reporting solution.

Answer

Management reporter

Answer

Power BI

Answer

Excel integration

Question 9

Which TWO of the following are features of the 'General ledger' in Dynamics 365 Finance?

Accepted Answer

Define financial dimensions.. Options B and D are correct. The General ledger in Dynamics 365 Finance stores the chart of accounts (D) and allows you to define financial dimensions (B) for categorizing transactions. Option A (manage purchase orders) belongs to Procurement and sourcing, Option C (manage fixed assets) is handled in the Fixed assets module, and Option E (create sales invoices) is done in Accounts receivable.

Answer

Manage purchase orders.

Answer

Manage fixed assets.

Answer

Create sales invoices.

Question 10

A retail company uses Dynamics 365 Finance. They want to automatically allocate overhead costs from a cost center to multiple departments based on a predefined percentage. Which costing feature should they use?

Accepted Answer

Cost allocations. Cost allocations distribute costs based on allocation bases. Cost accounting is the module. Overhead calculation is for manufacturing. Cost rollup is for bill of materials.

Answer

Cost accounting

Answer

Overhead calculation

Answer

Cost rollup

Question 11

A company uses Dynamics 365 Finance and wants to track budget funds availability before posting purchase orders. Which budget control configuration must be enabled?

Accepted Answer

Budget control. Budget control must be enabled and configured to check funds availability for purchase orders. Option A is wrong because budget plans are for planning, not control. Option B is wrong because budget register entries record budget amounts, but do not enforce control. Option D is wrong because budget models define the budget structure, not control.

Answer

Budget plan

Answer

Budget register entry

Answer

Budget model

Question 12

A company is setting up Dynamics 365 Finance for the first time. The system administrator needs to create a fiscal calendar that starts on July 1 and ends on June 30 of the following year. Which type of fiscal year should the administrator select?

Accepted Answer

July through June. A fiscal year starting July 1 and ending June 30 is defined as a 'July through June' fiscal year in Dynamics 365 Finance. Option B (October through September) is a different fiscal year pattern. Option C (Calendar year) runs January to December. Option D (April through March) is another fiscal year variant.

Answer

October through September

Answer

Calendar year

Answer

April through March

Question 13

An organization uses Dynamics 365 Finance for project accounting. They need to bill a customer for a fixed-price project based on a milestone schedule. Which billing method should be used?

Accepted Answer

Fixed-price milestone. Time and material bills actual hours. Fixed-price milestone bills based on predefined milestones. Progress billing is for percentage complete. Cost plus bill is for cost plus contracts.

Answer

Cost plus

Answer

Progress billing

Answer

Time and material

Question 14

A company uses Dynamics 365 Finance. The accounts receivable team needs to send payment reminders to customers automatically. Which feature should they configure?

Accepted Answer

Collection letters. The collection letter feature in Dynamics 365 Finance automatically sends payment reminders to customers. Option C is wrong because interest notes are for charging interest on overdue payments, not for sending reminders. Option B is wrong because customer payment journals record payments. Option D is wrong because invoice journals record invoices.

Answer

Customer payment journals

Answer

Interest notes

Answer

Invoice journals

Question 15

A company uses Dynamics 365 Finance. Which TWO features are available in the Cash and Bank Management module?

Accepted Answer

Cash flow forecasting. Bank reconciliation and cash flow forecasting are part of Cash and Bank Management. Fixed assets management is in Fixed assets. Budget control is in Budgeting. Vendor payments are in Accounts payable.

Answer

Vendor payments

Answer

Budget control

Answer

Fixed asset management