MB-920 Practice Test 49 — 15 Questions

Question 1

Refer to the exhibit. A Dynamics 365 Finance administrator imports the above exchange rate. For what purpose would an 'Average' exchange rate type be used?

Accepted Answer

To revalue balance sheet accounts at period end. Correct: Average rates are used for revaluation of balance sheet accounts. Option A is wrong because transaction entry uses spot rates. Option B is wrong because budget conversions use budget rates. Option D is wrong because sales invoicing uses spot rates.

Answer

To convert budget amounts

Answer

To convert foreign currency transactions at the time of entry

Answer

To calculate sales invoice amounts in company currency

Question 2

A company using Dynamics 365 Finance notices that some purchase orders are being created with incorrect tax codes. The tax codes are determined by the vendor and item. What should they configure to enforce correct tax codes?

Accepted Answer

Assign appropriate Sales tax groups and Item sales tax groups. Option D is correct because the Sales tax group and Item sales tax group determine the tax code applied. By setting up these groups correctly, the system will automatically select the correct tax code. Option A is wrong because tax codes are assigned to groups, not directly. Option B is wrong because tax authorities are for reporting. Option C is wrong because tax exemptions are for exempt customers.

Answer

Set up tax authorities and reporting codes

Answer

Define tax codes for each vendor and each item

Answer

Configure tax exemption numbers for vendors

Question 3

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.. Option B is correct because the CheckLevel is set to "None", meaning budget checks are disabled for purchase invoices. Option A is wrong because the account structure is defined. Option C is wrong because the source document type is correct. Option D is wrong because budget control is enabled.

Answer

The source document type is not supported for budget control.

Answer

The account structure does not include any financial dimensions.

Answer

Budget control is not enabled in the system.

Question 4

Which TWO of the following are true about the general journal in Dynamics 365 Finance?

Accepted Answer

They can be used to post adjustments and accruals.. Option A is correct because general journals are used for non-standard transactions. Option B is correct because you can set up approval workflows for general journals. Option C is wrong because general journals do not automatically post to subledgers; subledger posting is done through dedicated modules. Option D is wrong because reversing entries are available in journals like the general journal. Option E is wrong because general journals support multiple legal entities in one journal.

Answer

They automatically post to subledgers like Accounts Payable.

Answer

They cannot be reversed.

Answer

They can only be used for one legal entity at a time.

Question 5

A company is implementing Dynamics 365 Finance and needs to manage vendor payments efficiently. Which TWO features should be used to automate payment processing and reduce manual effort?

Accepted Answer

Electronic payment formats. Payment proposals automate the selection of invoices for payment. Electronic payment formats enable automated payment files for banks. Vendor hold prevents payment but does not automate. Payment calendar is for scheduling. Vendor invoice pool is for holding invoices, not automation. Options A and D are correct.

Answer

Vendor invoice pool

Answer

Vendor hold

Answer

Payment calendar

Question 6

Which TWO are valid document types in Dynamics 365 Finance for budget control?

Accepted Answer

Purchase requisitions. Options A and C are correct because Purchase requisitions and Purchase orders are common document types that can be subject to budget control. Option B is wrong because Sales orders are not typically subject to budget control in standard Dynamics 365 Finance. Option D is wrong because General journals can be subject but are not document types in the same sense; budget control is often on subledger documents. Option E is wrong because Vendor invoices are not typically subject to budget control directly.

Answer

Sales orders

Answer

General journals

Answer

Vendor invoices

Question 7

Which TWO are key features of Dynamics 365 Finance?

Accepted Answer

Financial reporting. Correct: Financial reporting and Budgeting are core features. Option C is wrong because Customer relationship management is in Dynamics 365 Sales. Option D is wrong because Inventory management is part of Supply Chain Management. Option E is wrong because Human resources is in Dynamics 365 Human Resources.

Answer

Human resources

Answer

Inventory management

Answer

Customer relationship management

Question 8

A company wants to use Dynamics 365 Finance to track budget versus actuals for each department. What should they configure?

Accepted Answer

Budget control configuration. Option C is correct because budget control in Dynamics 365 Finance allows tracking budget versus actual expenses at the department level. Option A is wrong because the chart of accounts structures accounts, not budget tracking. Option B is wrong because the general journal is used for entries, not budget tracking. Option D is wrong because financial dimensions allow segmentation but budget control is the feature that tracks against budget.

Answer

Financial dimensions

Answer

Chart of accounts

Answer

General journal

Question 9

A manufacturing company uses Dynamics 365 Finance to manage its financial operations. The finance team reports that when they post a purchase invoice for raw materials, the system automatically updates the general ledger and the inventory valuation. However, the team wants to ensure that the purchase invoice posting also triggers a budget check against the remaining budget for the raw materials account. Which configuration should you enable?

Accepted Answer

Enable budget control in General ledger parameters and define budget check rules for purchase invoices.. Option A is correct because the budget check is a prerequisite for budget control. Option B is wrong because budget register entries are used to record budget amounts, not to enable checks. Option C is wrong because budget planning is a separate process. Option D is wrong because commitment accounting is for encumbrances, not budget checks.

Answer

Activate commitment accounting for purchase orders.

Answer

Set up budget planning workflows to approve the budget.

Answer

Create budget register entries for the raw materials account.

Question 10

A company uses Dynamics 365 Finance and is planning to use AI capabilities to improve financial forecasting. Which THREE features are available in Dynamics 365 Finance for AI-driven forecasting?

Accepted Answer

Budget proposal from historical data.. Options A, C, and D are correct. Cash flow forecasting, budget proposal, and customer payment predictions are AI features. Option B is wrong because financial reporting is not AI-driven. Option E is wrong because vendor collaboration is a portal, not AI.

Answer

Financial reporting.

Answer

Vendor collaboration workspace.

Question 11

A retail company uses Dynamics 365 Finance for financial operations. They want to automate the process of posting daily sales to the general ledger. Which feature should they use?

Accepted Answer

Create a batch job to post sales orders automatically.. Option A is correct because Dynamics 365 Finance includes a batch job for posting sales orders and invoices automatically. Option B is wrong because recurring invoices are for regular customer invoices, not sales aggregation. Option C is wrong because the general journal is for manual adjustments. Option D is wrong because the payment journal is for recording payments.

Answer

Use the recurring invoice functionality.

Answer

Post a general journal with the total sales amount.

Answer

Set up a payment journal for daily sales.

Question 12

A manufacturing company uses Dynamics 365 Finance. The finance team needs to automate the calculation of monthly depreciation for fixed assets that are acquired mid-month. Which depreciation method should be configured to ensure proportional depreciation is applied based on the number of days the asset was in service during the first month?

Accepted Answer

Straight line service life. Half year convention starts depreciation at the midpoint of the year, not proportional per day. Declining balance is an accelerated method but does not handle mid-month acquisition proportionally. Straight line service life with prorated first month is the correct method to calculate depreciation based on the exact days the asset was in service. Reducing balance is similar to declining balance. Option C is correct.

Answer

Reducing balance

Answer

Declining balance

Answer

Half year convention

Question 13

Refer to the exhibit. A company has configured the above allocation rule in Dynamics 365 Finance. What does this rule do?

Accepted Answer

Allocates overhead from account 601100 to 601200 based on cost center. Correct: It allocates balances from main account 601100 to 601200 based on cost center values. Option A is wrong because it allocates from 601100 to 601200, not the reverse. Option B is wrong because both source and destination use cost center, not main account. Option D is wrong because it is not a fixed percentage method.

Answer

Allocates overhead from account 601100 to 601200 based on main account

Answer

Allocates overhead from account 601200 to 601100 based on cost center

Answer

Allocates a fixed percentage of overhead to all departments

Question 14

A company wants to use Dynamics 365 Finance to manage its cash flow by forecasting future bank balances. Which module should they use?

Accepted Answer

Cash and bank management. Option C is correct because Cash and bank management includes cash flow forecasting tools. Option A is wrong because Accounts payable manages vendor payments, not forecasting. Option B is wrong because Accounts receivable manages customer payments. Option D is wrong because General ledger is for posting, not forecasting.

Answer

Accounts receivable

Answer

Accounts payable

Answer

General ledger

Question 15

A company uses Dynamics 365 Finance and wants to automate the process of posting recurring journal entries for monthly depreciation. The journal entries must be generated automatically on the first day of each month. Which tool should you use?

Accepted Answer

Recurring journal voucher.. Option D is correct because recurring journal voucher is designed for recurring entries like depreciation. Option A is wrong because general journal is for manual entries. Option B is wrong because periodic processing is a broader term, not a specific tool. Option C is wrong because fixed assets journal is for asset acquisitions and disposals, not depreciation posting.

Answer

Periodic processing in Fixed assets.

Answer

Fixed assets journal.

Answer

General journal with a template.

MB-920 Practice Test 49 — 15 Questions

Exhibit

MB-920 Practice Test 49 — 15 Questions

Exhibit