MB-920 Practice Exam 52 — 20 Questions

Question 1

A company uses Dynamics 365 Finance and needs to record a non-recurring transaction that debits the 'Legal Expense' account and credits the 'Cash' account without using a subledger. Which journal type should the accounting team use?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Daily journal. A daily journal allows direct posting to general ledger accounts without a subledger, which matches the need to debit Legal Expense and credit Cash for a non-recurring transaction. Vendor invoice, customer payment, and fixed asset journals all require specific subledger accounts and would introduce unnecessary subledger activity, so they are not suitable for this simple general ledger entry.

Answer

Customer payment journal

Answer

Fixed asset journal

Answer

Vendor invoice journal

Question 2

A company is implementing Dynamics 365 Finance and needs to track the financial impact of its sustainability initiatives, such as carbon credits and environmental fees. Which module should they use to record and report these transactions?

Accepted Answer

General ledger. The General ledger module is the correct choice because it is the central repository for all financial transactions. By setting up specific main accounts and financial dimensions, a company can record carbon credits, environmental fees, and other sustainability-related entries. This enables accurate financial reporting and analysis of the initiatives' impact.

Answer

Budgeting

Answer

Accounts payable

Answer

Fixed assets

Question 3

A distribution company uses Dynamics 365 Supply Chain Management. They need to plan and optimize transportation routes for outbound deliveries, considering multiple stops and vehicle capacities. Which module should they use?

Accepted Answer

Transportation management. Transportation management is the dedicated module for planning and optimizing transportation, including outbound deliveries. It provides load planning, route planning, and rating capabilities that consider multiple stops, vehicle capacities, and time windows. This directly addresses the distribution company's need to optimize outbound delivery routes.

Answer

Master planning

Answer

Warehouse management

Answer

Inventory management

Question 4

A specialty food producer uses Dynamics 365 Supply Chain Management. The company must ensure that each finished batch of sauce can be traced back to the specific raw material lots used during production. Which feature should the production manager enable to support this requirement?

Accepted Answer

Batch and serial number tracking. Batch and serial number tracking records the genealogy of a product, linking finished batches to the raw material lots used. Batch attributes and shelf life management provide additional batch information but not the consumption linkage. Quality associations trigger tests but do not trace materials. Therefore, batch and serial number tracking is the correct feature.

Answer

Batch attributes

Answer

Quality associations

Answer

Shelf life management

Question 5

A company uses Dynamics 365 Commerce to manage its online store. The e-commerce manager wants to configure a promotion that offers a 10% discount on a specific product category when the customer's cart total exceeds $100. Which type of discount should the manager configure?

Accepted Answer

Threshold discount. Threshold discounts in Dynamics 365 Commerce are used to apply a discount when the cart total meets or exceeds a specified amount. They can be scoped to specific product categories, making them ideal for the described promotion. The manager should configure a threshold discount with a 10% off action and a condition of cart total > $100 for the designated category.

Answer

Discount offer

Answer

Mix and match discount

Answer

Quantity discount

Question 6

A company uses Dynamics 365 Supply Chain Management. They want to ensure that when a sales order is confirmed, the system automatically creates a purchase order for a drop-ship item that is not stocked. Which configuration should they use?

Accepted Answer

Enable direct delivery on the sales order line and specify a vendor.. Direct delivery is the correct configuration for drop-shipping. By enabling direct delivery on a sales order line and specifying a vendor, the system automatically creates a purchase order when the sales order is confirmed. This ensures the vendor ships directly to the customer. Other options do not provide this automatic, drop-ship-specific behavior.

Answer

Set the item's default order type to Purchase order and configure a vendor on the sales order line.

Answer

Create a transfer order from the sales order and set the from warehouse to a vendor location.

Answer

Use master planning to generate a planned purchase order and then firm it manually.

Question 7

A company uses Dynamics 365 Finance. The controller needs to track financial activity by department and by project for reporting purposes. Which two components should the controller configure to achieve this? (Choose two.)

Accepted Answer

Financial dimensions. To track financial activity by department and project, the controller must configure financial dimensions for those segments and include them in an account structure. The chart of accounts defines main accounts, the fiscal calendar defines periods, and budget control checks fund availability. Only financial dimensions and account structures provide the required segmentation for reporting.

Answer

Fiscal calendar

Answer

Chart of accounts

Answer

Budget control

Question 8

A company is implementing Dynamics 365 Finance and wants to streamline the process of creating and posting recurring transactions such as monthly rent and insurance expenses. They need a feature that allows them to define a template and generate multiple journal entries on a schedule. What should they use?

Accepted Answer

Periodic journals. Periodic journals are specifically designed to automate recurring transactions by using a template and a recurrence schedule. They reduce manual effort and ensure consistency for expenses like rent and insurance. General journals are manual, accruals handle period matching, and vendor invoice journals are for payables, so periodic journals are the correct feature.

Answer

Vendor invoice journals

Answer

General journals

Answer

Ledger accruals

Question 9

A company uses Dynamics 365 Supply Chain Management. They need to ensure that a specific vendor's products are inspected for quality upon receipt before they are put away. Which configuration should they implement?

Accepted Answer

Create a quality association that triggers an inspection order for the vendor.. Quality associations in Dynamics 365 Supply Chain Management automatically generate quality orders based on predefined conditions, such as a specific vendor. By setting up a quality association for the vendor, the system will create an inspection order when items from that vendor are received, ensuring they are inspected before put-away.

Answer

Enable quality management on the vendor's default purchase order settings.

Answer

Set up a vendor quarantine warehouse.

Answer

Configure the item's tracking dimension group to require quality inspection.

Question 10

A company uses Dynamics 365 Finance. The controller needs to create a financial report that shows the company's profitability by comparing revenue and expenses for the current quarter against the previous quarter. Which tool should the controller use?

Accepted Answer

Financial reporting. Financial reporting is the standard tool for generating formatted financial statements from general ledger data. It supports multiple columns for different periods, enabling quarter-over-quarter comparison of revenue and expenses. General ledger inquiries lack report formatting, Power BI reports are analytical rather than statement-oriented, and budgeting focuses on plan versus actual. Therefore, Financial reporting is the correct tool.

Answer

General ledger inquiries

Answer

Power BI default reports

Answer

Budgeting

Question 11

A company uses Dynamics 365 Supply Chain Management to manage procurement. They want to streamline the purchase requisition process by allowing employees to request items that are not yet in the system. Which TWO features should they configure to achieve this? (Choose two.)

Accepted Answer

Purchase requisition workflow. Procurement categories allow employees to request items that are not in the item master by selecting a category, while a purchase requisition workflow ensures these requests are properly approved. Together, they streamline the process for non-catalog items. Vendor collaboration, RFQs, and purchase order confirmation are all downstream or supplier-facing processes that do not enable the initial employee request.

Answer

Purchase order confirmation

Answer

Request for quotation (RFQ)

Answer

Vendor collaboration

Question 12

A company uses Dynamics 365 Supply Chain Management. They want to track the cost of goods sold and inventory value using a method that calculates an average cost based on the actual costs of items received. They also want to allow negative inventory and backdating of transactions. Which inventory costing method should they use?

Accepted Answer

Weighted average. The scenario requires an inventory costing method that calculates an average cost based on actual costs and allows negative inventory and backdating. Weighted average meets these requirements by averaging costs across all units. FIFO and LIFO track layers and do not average, while standard cost uses predetermined costs. Therefore, weighted average is the correct choice.

Answer

FIFO

Answer

Standard cost

Answer

LIFO

Question 13

A company is implementing Dynamics 365 Supply Chain Management. The warehouse manager needs to ensure that when a sales order is created, the system automatically reserves inventory for that order to prevent other orders from promising the same stock. Which feature should be used to achieve this?

Accepted Answer

Inventory reservation. To automatically reserve inventory for a sales order upon creation, the inventory reservation feature is used. It ties specific inventory to the order, preventing other orders from promising the same stock. This is different from ATP, which only calculates availability, and from blocking or marking, which serve other purposes.

Answer

Available to promise (ATP)

Answer

Inventory marking

Answer

Inventory blocking

Question 14

A company uses Dynamics 365 Finance to manage its accounts payable processes. The accounting manager needs to ensure that vendor invoices are automatically matched to purchase orders and product receipts before payment. The manager also wants to allow a tolerance for price and quantity differences. Which feature should the manager configure?

Accepted Answer

Invoice matching. Invoice matching is the feature that automates the comparison of vendor invoices with purchase orders and product receipts. It supports the configuration of matching policies that define tolerances for price and quantity variances. This ensures that invoices are validated before payment, reducing errors and manual effort.

Answer

Accounts payable invoice journal

Answer

Payment proposal

Answer

Vendor collaboration

Question 15

A company uses Dynamics 365 Finance to manage its financial operations. The accounting manager needs to ensure that all journal entries posted to the general ledger are automatically reviewed by a supervisor before they are finalized. The company also wants to maintain an audit trail of who approved each entry and when. Which feature should the manager configure?

Accepted Answer

Set up a journal workflow for the general journal.. A journal workflow in Dynamics 365 Finance is designed to route journal entries through an approval process before they are posted. It ensures that a supervisor reviews and approves entries, and it records the approval history. This provides both the required control and the audit trail, making it the appropriate configuration for the scenario.

Answer

Configure ledger posting definitions.

Answer

Enable budget control on the main account.

Answer

Set up financial dimensions for the journal.

Question 16

A Dynamics 365 Finance user is setting up a new legal entity and needs to define the account structure. Which two components are required to create an account structure? (Choose two.)

Accepted Answer

Main accounts. An account structure in Dynamics 365 Finance must include main accounts and at least one financial dimension. These two components define the valid combinations for posting. Advanced rules, account aliases, and the ledger calendar are either optional or serve different purposes, so they are not required for creating the account structure itself.

Answer

Advanced rules

Answer

Account aliases

Answer

Ledger calendar

Question 17

A company uses Dynamics 365 Finance. They want to automate the creation of purchase orders from sales orders to streamline their order-to-cash process. What feature should they use?

Accepted Answer

Intercompany trade. Intercompany trade is designed to automate transactions between legal entities. When a sales order is created in one legal entity, the system can automatically create a corresponding purchase order in another legal entity. This reduces manual effort and errors. The other options relate to approvals, inventory reservation, or planning, but none directly create purchase orders from sales orders.

Answer

Procurement and sourcing workflows

Answer

Master planning

Answer

Sales order reservation

Question 18

A furniture manufacturer uses Dynamics 365 Supply Chain Management. Production planners must be able to see, on a single screen, the current on-hand inventory of a component across the main warehouse and two overflow sites, along with any quantities already reserved for open production orders. Which workspace should the planners use?

Accepted Answer

The Inventory on-hand inquiry page, which displays physical, reserved, and available quantities by item and warehouse.. Planners need a consolidated view of physical stock, reservations, and availability across several storage locations, which is precisely what the Inventory on-hand inquiry page provides through its physical, reserved, and available columns by item and warehouse. Setup pages and planning workspaces describe configuration or future supply, not current reserved inventory.

Answer

The Master planning workspace, using the Planned orders and Released orders tabs.

Answer

The Product information management workspace with the Released products list page.

Answer

The Inventory management workspace with the On-hand inventory list page filtered by item number.

Question 19

A company uses Dynamics 365 Finance. The accounting manager needs to ensure that when a purchase order is created for a specific department, the system automatically validates that the department has sufficient budget. The company wants to prevent purchase orders from being approved if budget funds are insufficient. Which feature should the manager configure?

Accepted Answer

Budget control. Budget control is the feature in Dynamics 365 Finance that enforces budget availability checks on source documents like purchase orders. It can be configured to check funds at various points, such as on entry or on approval, and can prevent transactions that exceed the budget. This ensures that only purchase orders with sufficient budget are processed, meeting the manager's requirement.

Answer

Budget planning

Answer

Budget register entries

Answer

Commitment accounting

Question 20

A retail company uses Dynamics 365 Supply Chain Management. They want to streamline the process of capturing vendor details, purchase orders, and product receipts in a single, integrated workflow. Which module should they use?

Accepted Answer

Procurement and sourcing. Procurement and sourcing is the correct module because it encompasses vendor management, purchase order processing, and product receipt, forming the core of the procure-to-pay cycle. The other modules either handle downstream financial activities or planning, not the integrated purchasing workflow.

Answer

Master planning

Answer

Accounts payable

Answer

Inventory management