MB-920 Practice Test 37 — 15 Questions

Question 1

Refer to the exhibit. A Dynamics 365 Finance system has a tax code configured as shown. A sales invoice line item has a unit price of 100.00 (excluding tax) and the tax code applies. What is the total invoice line amount including tax?

Accepted Answer

119.00. Option C is correct. The 'WholeAmount' tax calculation method calculates tax on the total line amount, then adds it. Tax = 100.00 * 0.19 = 19.00; total = 119.00. Option A is wrong because it assumes no tax. Option B is wrong because it uses wrong rate. Option D is wrong because it doubles the tax.

Answer

110.00

Answer

138.00

Answer

100.00

Question 2

A company uses Dynamics 365 Finance. The finance team notices that the general ledger journal balance does not equal the sum of debits and credits. What could cause this discrepancy?

Accepted Answer

Unbalanced journal entry. Option B is correct because unbalanced journal entries can cause the general ledger balance to not match the sum of debits and credits. Option A is wrong because posting profiles affect account mapping, not balancing. Option C is wrong because voucher series assign numbers, not affect balance. Option D is wrong because user permissions control access, not balances.

Answer

Incorrect voucher number series

Answer

Incorrect posting profile configuration

Answer

User permissions

Question 3

A company uses Dynamics 365 Finance and has multiple legal entities. They need to consolidate financial data from all entities into a single reporting entity for quarterly reports. What feature should be used to perform this consolidation?

Accepted Answer

Consolidations. Option C is correct because the Consolidations module in Dynamics 365 Finance is designed to consolidate financial data from multiple legal entities. Option A is wrong because Intercompany accounting handles transactions between entities, not consolidation. Option B is wrong because the General ledger does not consolidate automatically. Option D is wrong because the Financial reporting module uses data from the ledger but does not perform the consolidation process itself.

Answer

Intercompany accounting

Answer

Financial reporting

Answer

General ledger

Question 4

Refer to the exhibit. A company has configured the General ledger parameters as shown. A user attempts to post a purchase order that exceeds the remaining budget for the current fiscal year. What will happen?

Accepted Answer

The purchase order will be blocked and an error message will appear.. Option C is correct because BudgetControl is enabled and AllowOverbudget is false, so the system will block the transaction and show a budget control error. Option A is wrong because the system will not allow posting; it will generate an error. Option B is wrong because there is no automatic approval workflow triggered by budget control. Option D is wrong because the system will not create a warning without blocking; it blocks by default when AllowOverbudget is false.

Answer

The purchase order will be posted and the budget will be adjusted automatically.

Answer

The purchase order will be placed on hold for manager approval.

Answer

The purchase order will be posted successfully but with a warning.

Question 5

A company uses Dynamics 365 Finance and wants to automate the approval of purchase requisitions based on dollar amount and department. What feature should be configured?

Accepted Answer

Workflows.. Option B is correct because workflows in Dynamics 365 Finance allow automated approval processes. Option A is wrong because budget control monitors spending, not approvals. Option C is wrong because role-based security controls access, not approval flow. Option D is wrong because procurement categories classify items, not approvals.

Answer

Procurement categories.

Answer

Role-based security.

Answer

Budget control.

Question 6

Refer to the exhibit. A user in the USMF legal entity tries to post a journal entry in the General ledger for fiscal year 2025 but receives an error. What is the most likely cause based on the exhibit?

Accepted Answer

The period status for 2025 is set to Closed. Correct: The period status is 'Closed', preventing posting. Option A (Legal entity) is valid. Option B (Module) is correct. Option D (Action) is standard.

Answer

The module is set to GeneralLedger instead of AccountsPayable

Answer

The legal entity USMF is not configured for general ledger posting

Answer

The fiscal calendar year 2025 is not yet opened

Question 7

Refer to the exhibit. A fixed asset is configured as shown. What is the depreciation amount for the first year (2025) if the company uses a half-year convention?

Accepted Answer

10000.00. Option C is correct. 200% declining balance doubles straight-line rate. Straight-line rate = 1/5 = 20%. Double = 40%. First year with half-year convention: 50000 * 40% * 0.5 = 10000. Option A is wrong because it ignores half-year convention. Option B is wrong because it uses straight-line. Option D is wrong because it uses full year double declining after half-year.

Answer

20000.00

Answer

12000.00

Answer

10000.00 (straight-line)

Question 8

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. Option A is correct because AI Builder requires a Power Apps license and must be configured for Copilot capabilities. Option B is wrong because data entities are for data import/export, not AI. Option C is wrong because workflow is for approval processes. Option D is wrong because electronic reporting is for document generation.

Answer

Electronic reporting format for invoices

Answer

Workflow for invoice approval

Answer

Data entities configured for import/export

Question 9

An organization wants to automate the process of reconciling bank transactions with entries in Dynamics 365 Finance. Which feature should be used?

Accepted Answer

Bank reconciliation. Option D is correct because the Bank reconciliation module in Dynamics 365 Finance automates matching bank statement lines to ledger entries. Option A is wrong because Cash and bank management is a module that includes bank reconciliation, but not the specific feature. Option B is wrong because Advanced bank reconciliation is an optional add-on that provides more automation, but the standard bank reconciliation feature is available in Cash and bank management. Option C is wrong because Payment journal is for recording payments, not reconciliation.

Answer

Cash and bank management

Answer

Advanced bank reconciliation

Answer

Payment journal

Question 10

Refer to the exhibit. A Dynamics 365 Finance system has a vendor invoice workflow configured as shown. A vendor invoice with an amount of $15,000 is submitted. Who will be required to approve the invoice?

Accepted Answer

First the manager, then the director. Option D is correct because the first step checks if amount > 10000, which is true, so the manager approves. The second step always requires director approval. Therefore both the manager and director must approve. Option A is wrong because only the manager is not enough. Option B is wrong because only the director is not enough. Option C is wrong because the manager approves first, then the director.

Answer

First the director, then the manager

Answer

Only the manager

Answer

Only the director

Question 11

A company using Dynamics 365 Finance is experiencing performance issues when running month-end close processes. The finance team suspects that the issue is related to the number of open transactions. Which strategy should be used to improve performance?

Accepted Answer

Archive historical transactions and reduce the data volume.. Option C is correct because archiving old transactions reduces the data volume, improving performance. Option A is wrong because increasing users may worsen performance. Option B is wrong because batch processing does not reduce data volume. Option D is wrong because reporting changes do not address the root cause.

Answer

Increase the number of concurrent users during close.

Answer

Modify the financial reporting to use summary data.

Answer

Run all close processes in batch mode.

Question 12

A company uses Dynamics 365 Finance and wants to automatically post vendor invoices from a purchase order receipt. Which process should be configured?

Accepted Answer

Accounts payable parameters with automatic posting. Option B is correct. The 'Post invoice automatically' option in the accounts payable parameters allows automatic posting of vendor invoices when goods are received. Option A is wrong because vendor invoice policies are for approval. Option C is wrong because purchase order workflows handle approvals. Option D is wrong because invoice matching ensures accuracy but doesn't automate posting.

Answer

Vendor invoice policy

Answer

Invoice matching validation

Answer

Purchase order approval workflow

Question 13

A company uses Dynamics 365 Finance to manage its fixed assets. The accountant needs to post a depreciation adjustment for a previous fiscal year that has already been closed. What should the accountant use?

Accepted Answer

Depreciation adjustment journal. The fixed asset journal is for routine transactions. Depreciation proposal posts planned depreciation. The depreciation adjustment journal is specifically for correcting prior year depreciation.

Answer

Fixed asset journal

Answer

General journal

Answer

Depreciation proposal

Question 14

A company uses Dynamics 365 Finance. Which TWO types of financial dimensions can be created?

Accepted Answer

Entity-backed dimensions. Custom dimensions are user-defined. Entity-backed dimensions are based on system entities like Cost centers. Fixed dimensions are not a type; they are default dimension values. Main account is an account, not a dimension. Budget dimensions are a concept, not a type.

Answer

Main account

Answer

Fixed dimensions

Answer

Budget dimensions

Question 15

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. Option B is correct because the 'Advanced bank reconciliation' feature automatically matches bank statements with ledger entries. Option A is wrong because the payment proposal generates payments, not reconciliations. Option C is wrong because the cash flow forecast predicts cash flow. Option D is wrong because the budget control process manages budgets.

Answer

Cash flow forecast

Answer

Budget control

Answer

Payment proposal

MB-920 Practice Test 37 — 15 Questions

Exhibit

MB-920 Practice Test 37 — 15 Questions

Exhibit