MB-920 Practice Test 31 — 15 Questions

Question 1

A company uses Dynamics 365 Finance and wants to streamline the approval of purchase requisitions. They need to ensure that requisitions over $10,000 are approved by a manager, while those over $50,000 require director approval. What should they configure?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Workflow. A is correct because Dynamics 365 Finance uses workflows to automate and enforce approval processes based on configurable conditions. By setting up a purchase requisition workflow, you can define approval thresholds (e.g., over $10,000 requires manager approval, over $50,000 requires director approval) using conditional decisions within the workflow designer.

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Audit policies

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Role-based security

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Business rules

Question 2

A manufacturing company uses Dynamics 365 Finance. The finance team notices that the 'Work in process' (WIP) account balances are not clearing correctly after production orders are completed. The production orders use the 'Standard cost' costing method. What is the most likely cause of this issue?

Accepted Answer

The production order variances have not been calculated and posted.. With standard cost costing, production order costs are posted at standard, and any difference between actual and standard is captured as a variance. If variances are not calculated and posted at the end of the production order, the WIP account is not relieved and the balances remain uncleared.

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The bill of materials (BOM) version is not approved.

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The cost category for the production route is set to 'Indirect cost' instead of 'Direct'.

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The item coverage group is set to 'Period' instead of 'Requirement'.

Question 3

A company wants to use Dynamics 365 Finance to automatically recognize revenue over time for subscription-based services. Which feature should they configure?

Accepted Answer

Revenue recognition. Revenue recognition in Dynamics 365 Finance enables automatic scheduling and deferral of revenue based on contract terms, such as subscription services. It uses deferred revenue schedules and fair value allocation to recognize revenue over time, aligning with ASC 606 and IFRS 15 standards.

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Fixed assets management

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Accounts payable

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Budgeting

Question 4

A company is planning to use Dynamics 365 Commerce to manage its omnichannel retail operations. Which of the following best describes a key benefit of using Dynamics 365 Commerce?

Accepted Answer

It offers a unified commerce platform that integrates online and physical store operations.. Dynamics 365 Commerce provides a unified commerce platform that seamlessly integrates online (e-commerce) and physical store operations, enabling consistent inventory, pricing, and customer experiences across all channels. This omnichannel capability is a core differentiator, as it connects point-of-sale (POS), call center, and e-commerce data into a single back-end system, eliminating silos and enabling real-time synchronization.

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It focuses solely on supply chain management for retail.

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It is designed only for customer loyalty programs.

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It provides a standalone e-commerce platform without integration to physical stores.

Question 5

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 in Dynamics 365 Finance is specifically designed to automate the matching of bank transactions with general ledger entries. It provides tools for importing bank statements, matching transactions, and resolving discrepancies, making it the correct feature for this requirement.

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Cash flow forecast

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Budget control

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Payment proposal

Question 6

Which TWO of the following are capabilities of Dynamics 365 Commerce?

Accepted Answer

Online store management. Dynamics 365 Commerce is a unified commerce solution that covers omnichannel retail operations. Online store management (Option B) is a core capability, enabling businesses to create and manage e-commerce sites with product catalogs, pricing, and promotions. Call center management (Option C) is also a key capability, providing order processing, customer service, and fulfillment features for phone-based sales channels.

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Budget planning

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Master planning

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Employee self-service

Question 7

A warehouse receives a shipment and needs to put items away based on their velocity (fast-movers near shipping). Which warehouse strategy should they configure?

Accepted Answer

Directed Put-away. Directed put-away is a warehouse strategy where the system directs workers to specific storage locations based on rules such as item velocity, ensuring fast-moving items are placed near shipping areas to minimize travel time. This matches the requirement to put away items based on velocity. Replenishment, cycle counting, and cross-docking serve different purposes.

Answer

Replenishment

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Cycle Counting

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Cross-docking

Question 8

Match each Dynamics 365 Project Operations component to its function.

Accepted Answer

Project Planning: Create project schedules, tasks, and milestones.. The correct matches: Project Planning schedules tasks, Resource Management allocates resources, Time and Expense Tracking logs hours/costs, and Project Billing handles invoices/revenue. Common confusions include swapping these definitions.

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Project Planning: Assign and manage resources across projects.

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Resource Management: Record time and expenses for projects.

Question 9

A company uses Dynamics 365 Finance. The accountant needs to view the current balance of a specific ledger account at any time. Which inquiry should they use?

Accepted Answer

Trial balance. Trial balance shows the balance of each ledger account for a specified period, allowing the accountant to view the current balance. Option B is incorrect because Ledger settlement is used for matching debits and credits, not for viewing balances. Option C is incorrect because Chart of accounts is a list of accounts, not balances. Option D is incorrect because Financial reporting generates reports but not real-time balance for a single account.

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Ledger settlement

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Chart of accounts

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Financial reporting

Question 10

Match each Dynamics 365 Supply Chain Management concept to its description.

Accepted Answer

Production control: Manage and schedule production orders. The correct matches are: Production control with managing production orders, Inventory management with tracking inventory, Warehouse management with warehousing processes, and Transportation management with shipments. The distractors swap descriptions between Production control and Inventory management.

Answer

Production control: Track inventory levels and transactions

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Inventory management: Manage and schedule production orders

Question 11

Which TWO features are part of Dynamics 365 Commerce? (Select two.)

Accepted Answer

Loyalty programs. Loyalty programs are a core feature of Dynamics 365 Commerce, enabling retailers to create, manage, and execute customer loyalty schemes, including points accrual, rewards, and tier management. This functionality is tightly integrated with the omnichannel capabilities to provide a consistent loyalty experience across online and physical store channels.

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Production control

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Project accounting

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Fixed assets

Question 12

Which TWO capabilities are provided by the Dynamics 365 Finance and Operations asset management module? (Choose two.)

Accepted Answer

Preventive maintenance scheduling. The Dynamics 365 Finance and Operations asset management module is specifically designed to manage physical assets throughout their lifecycle. Preventive maintenance scheduling (B) allows organizations to define and automate maintenance plans based on time or usage triggers, reducing unplanned downtime. Work order management (C) provides a structured process to create, assign, track, and close work orders for maintenance tasks, ensuring efficient resource allocation and completion tracking.

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Vendor collaboration portal

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Project cost accounting

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Sales order processing

Question 13

Which THREE are valid options for configuring product lifecycle states in Dynamics 365 Supply Chain Management? (Select exactly three.)

Accepted Answer

In development. 'In development' is a default lifecycle state in Dynamics 365 Supply Chain Management that indicates a product is being created and is not yet available for transactions. This state prevents the product from being used in sales, purchasing, or production processes until it is released.

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Deleted

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Obsolete

Question 14

Contoso Retail is a mid-sized company with 50 physical stores and an online store. They use Dynamics 365 Commerce. Recently, they launched a promotion offering 20% off on all electronics for a weekend. During the promotion, the online store experienced slow page load times, and some customers reported errors when adding items to the cart. The IT team checked the infrastructure and found that the Retail Server CPU usage was at 95%, and the channel database had high lock contention. The POS systems in stores were working fine. The company uses a single Retail Server instance and a single channel database for all channels. What is the best course of action to prevent this issue in future promotions?

Accepted Answer

Scale out the Retail Server and channel database to handle increased load.. The issue stems from a single Retail Server and single channel database being overwhelmed by the combined load of online and POS traffic during the promotion. Scaling out the Retail Server (e.g., adding more instances behind a load balancer) and the channel database (e.g., using a dedicated online channel database or scaling up/out the existing one) directly addresses the high CPU usage and lock contention, ensuring adequate capacity for future high-traffic events.

Answer

Disable the online store during promotions to ensure POS performance.

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Configure the online store to use offline mode.

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Reduce the promotion discount to 10% to lower traffic.

Question 15

Refer to the exhibit. A company has configured budget control in Dynamics 365 Finance as shown. The finance team reports that when posting a purchase invoice for raw materials, no budget check is performed. What is the most likely cause?

Accepted Answer

The CheckLevel is set to "None", disabling budget checks for purchase invoices.. Budget control in Dynamics 365 Finance only performs checks when the CheckLevel on the budget control configuration is set to something other than 'None'. If the exhibit shows CheckLevel = 'None', budget checking is effectively disabled for the affected source documents, so purchase invoices post without any budget verification.

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The source document type is not supported for budget control.

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The account structure does not include any financial dimensions.

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Budget control is not enabled in the system.