MB-920 Practice Test 41 — 15 Questions

Question 1

Refer to the exhibit. The JSON snippet shows a main account configuration in Dynamics 365 Finance. Based on this configuration, which of the following is true about this account?

Accepted Answer

It has a debit balance of 100,000.. Option A is correct because the opening balance is 100,000 and the account is a debit account, so it has a debit balance. Option B is wrong because the type is Asset, not Liability. Option C is wrong because the category is Cash, not Bank. Option D is wrong because the DebitCredit is Debit.

Answer

It defaults to credit posting.

Answer

It belongs to the Bank main account category.

Answer

It is a liability account.

Question 2

A company uses Dynamics 365 Finance. The finance team needs to generate financial reports that combine data from multiple legal entities into a single report. Which tool should they use?

Accepted Answer

Financial Reporting (Management Reporter). Option B is correct because Financial Reporting (Management Reporter) can combine data from multiple legal entities in a single report using row definitions and reporting trees. Option A is wrong because Power BI requires separate data integration. Option C is wrong because Excel integration can only access one entity at a time. Option D is wrong because general ledger inquiry shows one entity's data.

Answer

General ledger inquiry

Answer

Power BI

Answer

Excel integration

Question 3

A manufacturing company uses Dynamics 365 Finance and Operations. The finance team needs to ensure that all vendor invoices are approved by a manager before payment. What feature should be configured to enforce this approval workflow?

Accepted Answer

Vendor invoice workflow. Option B is correct because the vendor invoice approval workflow in Dynamics 365 Finance enforces manager approval before payment. Option A is wrong because vendor collaboration is for external vendors to submit invoices, not approval. Option C is wrong because budget control manages budget funds, not invoice approval. Option D is wrong because the financial journal workflow is for journal entries, not vendor invoices.

Answer

Budget control configuration

Answer

Financial journal workflow

Answer

Vendor collaboration workspace

Question 4

Which THREE of the following are capabilities of the Budgeting module in Dynamics 365 Finance?

Accepted Answer

Budget control to monitor budget consumption. Options A, B, and D are correct. Option A is correct because the Budgeting module includes budget planning for creating budget proposals. Option B is correct because budget control is part of budgeting to monitor budget consumption. Option D is correct because budget register entries allow recording budget amounts. Option C is wrong because generating financial statements is done in Financial reporting. Option E is wrong because processing vendor invoices is done in Accounts payable.

Answer

Process vendor invoices

Answer

Generate financial statements

Question 5

A retail company using Dynamics 365 Finance notices that sales tax is not being calculated correctly on invoices for cross-border transactions. The tax setup includes multiple tax codes and tax groups. What is the most likely cause?

Accepted Answer

Tax codes are not correctly assigned to the items or customers involved.. Option B is correct because incorrect assignment of tax codes to items or customers is a common cause of tax calculation errors. Option A is wrong because tax authority setup does not directly affect calculation. Option C is wrong because ledger posting groups affect posting, not calculation. Option D is wrong because withholding tax is separate.

Answer

The tax authority is not configured for cross-border transactions.

Answer

The ledger posting group for sales tax is set incorrectly.

Answer

Withholding tax is enabled for the vendor.

Question 6

An organization using Dynamics 365 Finance needs to streamline vendor payments by grouping multiple invoices into a single payment. Which feature should they use?

Accepted Answer

Payment proposal. Option A is correct. Payment proposals allow users to select multiple invoices for a vendor and generate a single payment. Option B is wrong because payment schedules spread a single invoice into installments. Option C is wrong because positive pay is a fraud prevention feature. Option D is wrong because electronic payment format is for file generation, not grouping.

Answer

Electronic payment format

Answer

Payment schedule

Answer

Positive pay

Question 7

Refer to the exhibit. A Dynamics 365 Finance administrator runs the PowerShell command shown. What is the expected output?

Accepted Answer

A list of configuration parameters for the General ledger module. Option B is correct. The command retrieves configuration parameters for the General ledger module, specifically the "Ledger" configuration. Option A is wrong because it retrieves a single setting, not all. Option C is wrong because it doesn't return module list. Option D is wrong because it doesn't run diagnostics.

Answer

The current value of the Ledger configuration setting

Answer

A list of all modules in Dynamics 365 Finance

Answer

An error because the command is invalid

Question 8

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 9

A company uses Dynamics 365 Finance and wants to automate the generation of vendor payments for approved invoices that are due within the next seven days. The payment proposal should include invoices from all vendors. What is the best way to configure this?

Accepted Answer

Create a payment proposal with a 'Due by' date filter set to seven days from today.. Option A is correct because a payment proposal with a 'Due by' date filter will select invoices due within that period. Option B is wrong because a payment schedule is for recurring payments, not for due date filtering. Option C is wrong because a payment journal is used to post payments but does not automatically select invoices. Option D is wrong because a vendor payment retention is for holding payments, not for selecting due invoices.

Answer

Configure a payment schedule for each vendor.

Answer

Set up a vendor payment retention for each invoice.

Answer

Use the 'Payment journal' to manually select invoices.

Question 10

Refer to the exhibit. The SQL-like query is used to retrieve data from Dynamics 365 Finance. What does this query return?

Accepted Answer

Main accounts with total debits greater than 10,000, ordered by total descending.. Option B is correct. The query selects MainAccount and sum of Amount from GeneralJournalEntry for a specific date range, groups by MainAccount, filters groups with total amount > 10000, and orders by total descending. Option A is wrong because it does not filter by a specific account. Option C is wrong because it returns only accounts with total > 10000. Option D is wrong because it is not ordered ascending.

Answer

All general journal entries for a specific main account.

Answer

Main accounts with total amounts less than 10,000, ordered ascending.

Answer

All main accounts with any activity in 2025.

Question 11

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. Option C is correct because collection letter feature in Dynamics 365 Finance automatically sends payment reminders to customers. Option A is wrong because interest notes are for charging interest on overdue payments. 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 12

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. Option D is correct because the Financial reporting module in Dynamics 365 Finance allows creation and management of financial statements for multiple reporting standards. Option A is wrong because General ledger is the core ledger but does not manage local reporting standards directly. Option B is wrong because Budgeting is for budget planning. Option C is wrong because Accounts payable is for vendor transactions.

Answer

Budgeting

Answer

General ledger

Answer

Accounts payable

Question 13

Which TWO of the following are features of the Cash and bank management module in Dynamics 365 Finance?

Accepted Answer

Cash flow forecasting. Options B and D are correct. Option B is correct because bank reconciliation is a core feature of Cash and bank management. Option D is correct because cash flow forecasting is available in the module. Option A is wrong because budget control is in the Budgeting module. Option C is wrong because fixed asset management is in Fixed assets. Option E is wrong because credit management is in Accounts receivable.

Answer

Credit management

Answer

Budget control

Answer

Fixed asset depreciation

Question 14

A company needs to generate financial statements in Dynamics 365 Finance that comply with local regulatory requirements. Which tool should be used to design custom financial reports?

Accepted Answer

Financial reporting (Management Reporter).. Option D is correct because Management Reporter (now part of Financial reporting) is the tool for custom financial reports. Option A is wrong because Power BI is for analytics, not report design. Option B is wrong because Excel integration is for ad-hoc analysis. Option C is wrong because the General ledger inquiry shows data, not reports.

Answer

Excel integration via OData.

Answer

Power BI dashboards.

Answer

General ledger inquiry.

Question 15

A retail company using Dynamics 365 Finance notices that inventory valuations are incorrect due to varying purchase prices. Which costing method will provide the most accurate valuation by averaging costs over a period?

Accepted Answer

Weighted average. Option A is correct. Weighted average costing calculates an average cost after each receipt, smoothing out price fluctuations. Option B is wrong because FIFO assigns the oldest cost to sales. Option C is wrong because standard costing uses predetermined costs. Option D is wrong because moving average recalculates after each transaction, not over a period.

Answer

Standard cost

Answer

FIFO

Answer

Moving average

MB-920 Practice Test 41 — 15 Questions

Exhibit

MB-920 Practice Test 41 — 15 Questions

Exhibit