MB-920 Practice Test 50 — 15 Questions

Question 1

A multinational company uses Dynamics 365 Finance with multiple legal entities. They want to streamline intercompany invoicing by automatically creating invoices for intercompany purchases when a purchase order is confirmed. What configuration is required?

Accepted Answer

Configure intercompany parameters to automatically post invoices on purchase order confirmation.. Option B is correct because the intercompany setup in Dynamics 365 Finance includes a setting to automatically create intercompany invoices when purchase orders are confirmed. Option A is wrong because recurring invoices are for regular customer invoices, not intercompany. Option C is wrong because purchase agreements are for long-term contracts, not automatic intercompany invoicing. Option D is wrong because vendor invoices are for external purchases.

Answer

Use vendor invoices to manually record intercompany transactions.

Answer

Create a purchase agreement between legal entities.

Answer

Set up recurring invoices for each intercompany relationship.

Question 2

A company uses Dynamics 365 Finance and needs to ensure that purchase order invoices are automatically matched to the original purchase order and receipt quantities before payment. Which configuration is required?

Accepted Answer

Enable invoice matching validation. Invoice matching policy enforces three-way matching (PO, receipt, invoice). Payment schedule is for installment payments. Vendor payment journal is for recording payments. Purchase agreement is for long-term contracts. Option B is correct.

Answer

Create a vendor payment journal

Answer

Configure a purchase agreement

Answer

Set up a payment schedule

Question 3

A company uses Dynamics 365 Finance and needs to create a consolidated financial report that combines data from multiple legal entities. Which feature should be used?

Accepted Answer

Consolidation module.. Option C is correct because consolidation in Dynamics 365 Finance combines financial data from multiple entities. Option A is wrong because financial reporting is for reports within one entity. Option B is wrong because intercompany accounting posts transactions between entities, not consolidation. Option D is wrong because budget consolidation is for budgets.

Answer

Budget consolidation.

Answer

Financial reporting module.

Answer

Intercompany accounting.

Question 4

Your organization is implementing Dynamics 365 Finance and needs to ensure that intercompany transactions are automatically reconciled. Which setup is required?

Accepted Answer

Set up intercompany accounting and define intercompany partners.. Option A is correct because intercompany accounting setup defines the rules for automatic posting and reconciliation of intercompany transactions. Option B is wrong because consolidation is for combining financial statements of multiple legal entities, not for intercompany reconciliation. Option C is wrong because elimination rules are part of consolidation to remove intercompany balances. Option D is wrong because allocation rules are for distributing costs.

Answer

Define elimination rules for intercompany transactions.

Answer

Create allocation rules for intercompany charges.

Answer

Configure consolidation processes.

Question 5

A multinational company using Dynamics 365 Finance needs to comply with local tax reporting requirements in multiple countries. The tax rates and rules change frequently. Which tool should you use to manage tax configurations without customizing the code?

Accepted Answer

Tax engine.. Option B is correct because the tax engine allows configuration of tax rules without code. Option A is wrong because the general ledger is for accounting entries. Option C is wrong because the electronic reporting module is for generating reports, not managing tax rules. Option D is wrong because the feature management tool enables/disables features, not tax configurations.

Answer

General ledger parameters.

Answer

Electronic reporting module.

Answer

Feature management.

Question 6

A company uses Dynamics 365 Finance for financial management. The CFO wants to use AI to predict customer payment delays and recommend proactive actions. Which feature should you use?

Accepted Answer

Customer payment predictions. Option B is correct because Dynamics 365 Finance includes AI-driven customer payment predictions that provide insights and recommendations. Option A is wrong because Copilot in Finance is for conversational assistance, not specifically payment predictions. Option C is wrong because the cash flow forecasting feature does not include customer payment delay predictions. Option D is wrong because budgeting and planning is for budget creation.

Answer

Cash flow forecasting

Answer

Microsoft Copilot in Finance

Answer

Budgeting and planning

Question 7

A financial analyst runs the above export job but notices that the exported file contains entries from 2024 as well. What is the most likely cause?

Accepted Answer

The filter field name 'AccountingDate' does not match the source data field name. The filter uses 'AccountingDate ge 2025-01-01' which should filter from Jan 1, 2025, but the filter might not be applied correctly due to the source data format being CSV, which may cause date format interpretation issues. However, the exhibit shows the filter is set correctly. The most likely cause is that the filter is not applied because the data source format is CSV and the filter may use a different date format. But among options, the filter expression is case-sensitive and 'ge' is correct. Actually, the filter should work. The issue might be that the filter is not being applied because the job was run without filter. But the exhibit shows filter present. Option C is most plausible: the filter uses 'AccountingDate' but the field might be 'TransactionDate' in the source. Option D is also possible. However, the typical mistake is that the filter field name does not match. I'll go with C: The filter field name is incorrect.

Answer

The filter condition is case-sensitive and should be 'GE'

Answer

The export format should be XML instead of CSV

Answer

The export job needs to be run with the 'Apply filter' option enabled

Question 8

Your company is implementing Dynamics 365 Finance and needs to manage intercompany transactions. Which TWO statements about intercompany accounting are correct?

Accepted Answer

Intercompany transactions can be eliminated during consolidation using elimination rules.. Option A is correct because intercompany transactions require elimination rules for consolidation. Option C is correct because intercompany journals can be used to record transactions between legal entities. Option B is wrong because intercompany transactions can be automated. Option D is wrong because intercompany transactions are not limited to sales orders; they include purchases and other transactions. Option E is wrong because intercompany transactions can be eliminated during consolidation.

Answer

Intercompany transactions are only supported for sales orders.

Answer

Intercompany transactions must be entered manually in each legal entity.

Answer

Intercompany transactions cannot be eliminated during consolidation.

Question 9

A company wants to use Dynamics 365 Finance to manage its cash flow. Which feature allows them to forecast future cash positions based on historical data and expected payments?

Accepted Answer

Cash flow forecasting. Option C is correct because the cash flow forecasting feature in Dynamics 365 Finance uses historical and expected data to predict cash positions. Option A is wrong because payment schedules are for installment payments. Option B is wrong because the bank reconciliation module reconciles statements, not forecasts. Option D is wrong because the general ledger is for posting transactions, not forecasting.

Answer

General ledger

Answer

Bank reconciliation

Answer

Payment schedules

Question 10

A retail company uses Dynamics 365 Finance to manage financial operations. The CFO wants to forecast cash flow using historical data. Which feature should be used to predict future cash positions?

Accepted Answer

Cash flow forecasting. Cash flow forecasting uses historical data to predict future cash positions. Budgeting is for planning, not forecasting. Bank reconciliation matches transactions. Payment proposals generate payments. Option A is correct.

Answer

Payment proposal

Answer

Bank reconciliation

Answer

Budgeting

Question 11

Your organization is configuring a purchase order approval workflow in Dynamics 365 Finance. The exhibit shows a JSON representation of the workflow step. After implementation, POs are automatically approved when the manager does not act within 48 hours, bypassing the intended VP of Procurement. What is the most likely cause?

Accepted Answer

The escalation action is set to 'Approve' instead of 'Escalate'.. Option D is correct because the 'escalationAction' is set to 'Approve', which means when the time limit is exceeded, the system automatically approves the PO instead of routing to the fallback approver. To route to the VP, the escalationAction should be 'Escalate' or similar. Option A is wrong because the fallback is defined as VP of Procurement. Option B is wrong because the time limit is 48 hours. Option C is wrong because the assignee is Manager.

Answer

The time limit is set to 48 hours.

Answer

The fallback approver is set to VP of Procurement.

Answer

The assignee is set to Manager.

Question 12

Which TWO of the following are core financial modules in Dynamics 365 Finance?

Accepted Answer

Accounts payable. Option B is correct because Accounts payable is a core module. Option D is correct because General ledger is the central module. Option A is wrong because Human resources is a separate app. Option C is wrong because Project management is a module but not core financial in the same sense. Option E is wrong because Sales and marketing is a separate app.

Answer

Sales and marketing

Answer

Human resources

Answer

Project management

Question 13

A company uses Dynamics 365 Finance to manage asset lifecycle. They want to track maintenance costs and schedule preventive maintenance. Which TWO modules should be used?

Accepted Answer

Asset management. Asset management tracks maintenance and repairs. Fixed assets manage depreciation and financial tracking. Project management is for projects. Budgeting is for planning. Procurement is for purchasing. Options A and B are correct.

Answer

Budgeting

Answer

Procurement and sourcing

Answer

Project management and accounting

Question 14

Your organization is configuring Accounts payable in Dynamics 365 Finance. You need to set up vendor posting profiles. Which THREE components are part of a vendor posting profile?

Accepted Answer

Summary account. Option A is correct because the summary account is used for vendor balances. Option C is correct because the settlement account is used for payment settlements. Option E is correct because the discount account is used for cash discounts. Option B is wrong because inventory accounts are in inventory posting profiles. Option D is wrong because the AR account is for customer balances.

Answer

Inventory account

Answer

Accounts receivable account

Question 15

Your organization uses Dynamics 365 Finance and needs to track expenses by project for a construction project. Which module and configuration should you use?

Accepted Answer

Project management and accounting module with cost categories and budgets.. Option B is correct because the Project management and accounting module provides cost tracking and invoicing for projects, with expense categories and budgets. Option A is wrong because the Expense management module is for employee expense reports, not project cost tracking. Option C is wrong because the Budgeting module is for financial budgets, not project-specific cost tracking. Option D is wrong because the Fixed assets module is for asset management.

Answer

Fixed assets module with asset tracking.

Answer

Budgeting module with budget control.

Answer

Expense management module with expense categories.