MB-920 Practice Test 44 — 15 Questions

Question 1

Refer to the exhibit. The exhibit shows the period status configuration for the USMF legal entity. An accounts payable clerk in the 'AP clerks' user group is trying to post a vendor invoice dated January 15, 2024. What will happen?

Accepted Answer

The invoice cannot be posted until the period is opened.. Option B is correct because the period status is 'On hold' with posting restriction 'No posting allowed', so the user cannot post the invoice. Option A is wrong because the period is not open. Option C is wrong because the user group is restricted. Option D is wrong because the user cannot post, but can still enter data.

Answer

The invoice can be posted only if the user has manager approval.

Answer

The user can post the invoice but not enter new transactions.

Answer

The invoice will be posted successfully.

Question 2

A company uses Dynamics 365 Finance and needs to generate financial statements that comply with local regulatory requirements. Which feature should they use?

Accepted Answer

Financial reporting. Financial reporting provides customizable reports for compliance. Option B is for budgets. Option C is for intercompany. Option D is for regulatory compliance but not reporting.

Answer

Electronic reporting

Answer

Intercompany accounting

Answer

Budget control

Question 3

Which THREE components are typically part of the general ledger setup in Dynamics 365 Finance? (Select THREE.)

Accepted Answer

Chart of accounts. Option A is correct because chart of accounts is the foundation. Option C is correct because financial dimensions are used for reporting. Option E is correct because main accounts are part of the chart of accounts. Option B is wrong because it is a subledger. Option D is wrong because it is for payments.

Answer

Payment schedule

Answer

Customer payment journal

Question 4

A company uses Dynamics 365 Finance and needs to automate the process of converting purchase requisitions into purchase orders. Which feature should be used?

Accepted Answer

Configure a purchase requisition workflow that automatically generates a purchase order when the requisition is approved.. Option A is correct because purchase requisition workflow can include a step to automatically generate a purchase order upon approval. Option B is wrong because vendor collaboration is for external supplier communication. Option C is wrong because procurement catalogs define approved products. Option D is wrong because request for quotation (RFQ) is for competitive bidding.

Answer

Set up a procurement catalog to define items that can be ordered.

Answer

Enable vendor collaboration to allow vendors to create purchase orders.

Answer

Use the Request for quotation (RFQ) process to select a vendor and create a purchase order.

Question 5

A company uses Dynamics 365 Finance and wants to enable AI-driven insights to detect anomalies in financial transactions. Which Copilot feature should be used?

Accepted Answer

Enable the AI anomaly detection in the Finance insights module.. Option A is correct because the AI anomaly detection in finance module uses machine learning to identify unusual transactions. Option B is wrong because Copilot for sales is for sales processes. Option C is wrong because Copilot for service is for customer service. Option D is wrong because Copilot for finance insights provides general insights, not specifically anomaly detection.

Answer

Activate Copilot for Finance insights to generate reports.

Answer

Use Copilot for Sales to analyze transaction data.

Answer

Configure Copilot for Service to review financial transactions.

Question 6

A manufacturing company wants to track the cost of raw materials from purchase to finished goods. Which module in Dynamics 365 Finance should they primarily use?

Accepted Answer

Inventory management. Correct: Inventory management handles cost tracking of raw materials. Option A is wrong because Accounts payable manages vendor invoices, not cost tracking. Option B is wrong because General ledger is for financial reporting. Option D is wrong because Budgeting is for planning, not tracking.

Answer

Accounts payable

Answer

Budgeting

Answer

General ledger

Question 7

Which THREE are valid financial dimensions in Dynamics 365 Finance?

Accepted Answer

Cost center. Correct: Department, Cost center, and Project are standard dimensions. Option B is wrong because Vendor is an account type, not a dimension. Option D is wrong because Location is part of inventory dimensions.

Answer

Vendor

Answer

Location

Question 8

An organization is implementing Dynamics 365 Finance and needs to ensure that all vendor invoices are approved before payment. They want to automate three-way matching for purchase order invoices. What must be set up?

Accepted Answer

Accounts payable parameters, invoice matching workflow, and vendor tolerances. Option D is correct because three-way matching requires accounts payable policies, invoice matching workflow, and vendor setup to enable matching. Option A is wrong because only workflow is insufficient. Option B is wrong because only vendor setup is insufficient. Option C is wrong because only invoice matching workflow is insufficient. All three components are necessary.

Answer

Only the invoice matching workflow

Answer

Only accounts payable parameters for invoice matching

Answer

Only vendor tolerances for matching

Question 9

A company uses Dynamics 365 Finance with multiple legal entities. The accounting manager notices that when intercompany transactions are posted, the due-to and due-from accounts are not automatically created. The intercompany setup appears correct, but the transactions fail to generate the intercompany accounting entries. What should you verify first?

Accepted Answer

Check the intercompany accounting setup for the due-to and due-from account mappings.. Option C is correct because intercompany transactions require the intercompany accounting setup to define the offset accounts. Option A is wrong because the chart of accounts is necessary but not the root cause. Option B is wrong because currency setup affects exchange rates, not the generation of due-to/due-from. Option D is wrong because legal entity setup is required but unless accounting rules are defined, entries won't be created.

Answer

Confirm that the intercompany currency is properly configured.

Answer

Verify that the chart of accounts includes intercompany accounts.

Answer

Ensure each legal entity has a default financial dimension set.

Question 10

A company using Dynamics 365 Finance needs to ensure that purchase requisitions over $10,000 are reviewed by a manager before becoming purchase orders. Which feature should they use?

Accepted Answer

Workflow. Option C is correct because workflow automates approval processes based on rules. Option A is wrong because budget control prevents overspending, not approvals. Option B is wrong because purchase agreements are contracts with vendors. Option D is wrong because procurement catalogs manage approved items.

Answer

Purchase agreements

Answer

Procurement catalogs

Answer

Budget control

Question 11

Refer to the exhibit. The exhibit shows a vendor invoice with a cash discount. If the company pays the invoice on January 25, 2024, what is the payment amount?

Accepted Answer

4900. Option B is correct: 2% discount if paid by January 30, so payment = 5000 * 0.98 = 4900. Option A is wrong because it doesn't apply discount. Option C is wrong because it applies wrong percentage. Option D is wrong because it miscalculates.

Answer

4800

Answer

5000

Answer

4950

Question 12

A retail company uses Dynamics 365 Finance and wants to implement Copilot (AI-powered assistant) to help the finance team analyze financial data and generate insights. Which feature in Dynamics 365 Finance provides Copilot capabilities?

Accepted Answer

Copilot in finance and operations. Copilot in finance and operations provides AI-powered analysis and insights. Option A is a general concept, Option B is for reporting, Option D is for analytics, but Copilot is the specific feature.

Answer

Power BI embedded

Answer

Financial reporting

Answer

AI Builder

Question 13

A multinational company uses Dynamics 365 Finance and needs to report financial results in both the local currency (EUR) and the reporting currency (USD). The exchange rates fluctuate daily. What is the recommended approach to handle currency translation for financial reporting?

Accepted Answer

Define a reporting currency in the ledger setup and use translation methods.. Option D is correct because Dynamics 365 Finance supports reporting currencies that automatically translate amounts based on exchange rates. Option A is wrong because manual adjustment is error-prone. Option B is wrong because separate legal entities are not required for reporting. Option C is wrong because periodic exchange rate adjustments are for revaluation, not reporting.

Answer

Create a separate ledger for USD and manually adjust entries.

Answer

Set up two legal entities, one for EUR and one for USD.

Answer

Use the periodic exchange rate adjustment to update currency values.

Question 14

A Dynamics 365 Finance user reports that the 'Customer payment journal' shows an incorrect exchange rate for a foreign currency payment. The exchange rate was updated yesterday. What is the most likely reason for the incorrect rate?

Accepted Answer

The exchange rate date on the journal is different from the payment date.. Option B is correct because the exchange rate date on the journal might be different from the payment date, causing the system to use a rate from a different day. Option A is wrong because the exchange rate table is updated, but the journal might use a different date. Option C is wrong because the currency is set up correctly if payments are processing. Option D is wrong because rounding rules affect amounts, not the exchange rate itself.

Answer

The exchange rate table was not updated correctly.

Answer

The currency is not set up for exchange rate updates.

Answer

The rounding rule for the currency is incorrect.

Question 15

A manufacturing company uses Dynamics 365 Finance. The finance team notices that the actual budget expenditures for the current fiscal year are significantly higher than planned. They need to identify variances and adjust the budget accordingly. Which feature should they use to analyze the budget vs. actuals and make adjustments?

Accepted Answer

Budget control configuration. Budget control configuration allows monitoring of budget funds and analysis of budget vs. actuals. Option A (Budget planning) is for planning, not analysis. Option B (Budget register entries) is for recording, not analysis. Option D (Fixed asset management) is unrelated.

Answer

Budget planning

Answer

Budget register entries

Answer

Fixed asset management

MB-920 Practice Test 44 — 15 Questions

Exhibit

MB-920 Practice Test 44 — 15 Questions

Exhibit