MB-920 Describe the core capabilities of the finance and operations apps Practice Test 7 — 15 Questions

Question 1

A manufacturing company uses Dynamics 365 Finance and Operations. They want to automatically post a purchase order once it is approved by a manager. What feature should they configure?

Accepted Answer

Workflow. Workflow in Dynamics 365 Finance and Operations is the correct feature because it allows you to define a business process that automatically triggers an action—such as posting a purchase order—once a specific condition (e.g., manager approval) is met. Workflows can be configured to run without manual intervention, enabling the automatic posting of the purchase order immediately after the approval step completes.

Answer

Electronic reporting

Answer

Batch job

Answer

Budget control

Question 2

A company is implementing Dynamics 365 Finance and needs to track inventory costs using a standard costing method. Which inventory model should they select?

Accepted Answer

Standard cost. Standard cost is the correct inventory model because it values inventory at predetermined costs, which aligns with the requirement to track inventory costs using a standard costing method. In Dynamics 365 Finance, the standard cost model uses predefined item costs and variances to capture differences between actual and standard costs, enabling cost control and analysis.

Answer

LIFO

Answer

FIFO

Answer

Weighted average

Question 3

A retail company uses Dynamics 365 Commerce integrated with Finance. They notice that store transactions are not appearing in the general ledger. What is the most likely cause?

Accepted Answer

P-job distribution is failing. Option D is correct because the P-job in Commerce Data Exchange posts transactions to the general ledger. If it fails, transactions remain unposted. Option A is wrong because the statement posting process is separate and typically works if P-job runs. Option B is wrong because inventory updates do not affect general ledger posting. Option C is wrong because the Commerce scheduler is for data distribution, not posting.

Answer

Commerce scheduler is not configured

Answer

Statement posting is not run

Answer

Inventory update is not completed

Question 4

An organization uses Dynamics 365 Supply Chain Management. They want to ensure that a vendor invoice cannot be posted if the purchase order has not been received. What feature should they enable?

Accepted Answer

Invoice matching validation. Option C, Invoice matching validation, is correct because it enforces a three-way matching policy where the vendor invoice cannot be posted unless the quantities and amounts match the corresponding purchase order receipt. This ensures that the invoice is validated against the received goods before posting, preventing payment for un-received items.

Answer

Invoice hold

Answer

Purchase order approval workflow

Answer

Budget control

Question 5

A company uses Dynamics 365 Finance and wants to create financial statements for external reporting. Which tool should they use?

Accepted Answer

Financial reporting. Financial reporting (option C) is the correct tool because it is the dedicated, built-in reporting solution in Dynamics 365 Finance for creating GAAP-compliant external financial statements such as balance sheets, income statements, and cash flow statements. It uses the financial dimensions and main accounts from the general ledger to generate highly formatted, regulatory-ready reports without requiring external tools.

Answer

Excel integration

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Management Reporter

Answer

Power BI

Question 6

A distribution company uses Dynamics 365 Supply Chain Management. They need to automatically allocate inventory to sales orders based on customer priority. What feature should they configure?

Accepted Answer

Inventory reservation hierarchy. Option D is correct because the 'Inventory reservation hierarchy' allows defining rules for allocating inventory based on criteria like customer priority. Option A is wrong because picking lists are for warehouse operations, not allocation. Option B is wrong because ATP is for availability calculation, not allocation. Option C is wrong because batch balancing is for process manufacturing.

Answer

Picking list

Answer

Batch balancing

Answer

ATP (Available to Promise)

Question 7

A company uses Dynamics 365 Finance and wants to automate the reconciliation of bank transactions with general ledger entries. Which feature should they use?

Accepted Answer

Advanced bank reconciliation. Advanced bank reconciliation in Dynamics 365 Finance automates the matching of bank statement lines with open bank document lines (e.g., checks, deposits) and general ledger entries. It uses matching rules and algorithms to suggest or auto-apply matches, reducing manual effort. This feature is specifically designed for high-volume, automated reconciliation scenarios, unlike the basic Bank reconciliation feature which requires manual matching.

Answer

Electronic reporting

Answer

Bank reconciliation

Answer

Cash and bank management

Question 8

A company using Dynamics 365 Project Operations needs to track time and expenses against a project. Which module should they use?

Accepted Answer

Project management and accounting. In Dynamics 365 Project Operations, the Project management and accounting module is the primary module for tracking time and expenses against a project. It integrates time entry and expense reporting directly with project costing, billing, and budgeting, ensuring that all project-related transactions are captured and allocated correctly.

Answer

Expense management

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Time and attendance

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Human resources

Question 9

A company uses Dynamics 365 Supply Chain Management. They want to enable a vendor to manage their own inventory at the customer's site (consignment inventory). What process should they set up?

Accepted Answer

Consignment inventory. Consignment inventory in Dynamics 365 Supply Chain Management allows a vendor to own stock that is physically located at the customer's site. The customer only pays for the inventory when it is consumed or transferred to their ownership. Setting up the consignment inventory process enables the vendor to manage replenishment and visibility of their stock at the customer location through vendor collaboration features.

Answer

Vendor collaboration

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Purchase order with drop shipment

Answer

Transfer order

Question 10

Which TWO capabilities are part of Dynamics 365 Finance and Operations core capabilities? (Choose two.)

Accepted Answer

Supply chain management. Supply chain management is a core capability of Dynamics 365 Finance and Operations because it provides end-to-end visibility and control over procurement, inventory, warehousing, and logistics. This module integrates directly with financial management to ensure real-time cost tracking and compliance across the supply chain.

Answer

Customer relationship management

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Human resources

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Marketing

Question 11

Which THREE features are available in Dynamics 365 Supply Chain Management? (Choose three.)

Accepted Answer

Transportation management. Transportation management is a core feature of Dynamics 365 Supply Chain Management that enables businesses to manage inbound and outbound shipments, rate shopping, route planning, and freight reconciliation. It integrates with warehouse and production modules to optimize logistics and carrier selection.

Answer

Project management

Answer

Retail management

Question 12

Which TWO are components of Dynamics 365 Finance? (Choose two.)

Accepted Answer

Accounts payable. Accounts payable is a core component of Dynamics 365 Finance that manages vendor invoices, payments, and purchase transactions. It integrates with the general ledger to ensure accurate financial reporting and supports automated payment processing and vendor reconciliation.

Answer

Production control

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Sales order management

Answer

Inventory management

Question 13

A company is configuring a main account for Cash in the legal entity USMF. Based on the exhibit, what is the main account type?

Accepted Answer

Asset. Option A is correct because the exhibit shows "Type": "Asset". Option B is wrong because liability is not specified. Option C is wrong because equity is not specified. Option D is wrong because expense is not specified.

Answer

Liability

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Expense

Answer

Equity

Question 14

A batch job in Dynamics 365 Supply Chain Management is recalculating inventory on-hand and is currently at 45% progress. The job has been running for 2 hours. What should the administrator do to analyze performance?

Accepted Answer

Review the batch job history for execution details. Option D is correct because reviewing the batch job history provides detailed execution logs, including step-by-step progress, error messages, and performance metrics such as duration per task. This allows the administrator to identify bottlenecks or failures in the recalculation process without interrupting the job. The batch job history is the primary diagnostic tool for analyzing long-running jobs in Dynamics 365 Supply Chain Management.

Answer

Check the status of other batch jobs

Answer

Configure a batch job alert

Answer

Cancel the job and restart it

Question 15

A purchase order with a total amount of $15,000 is submitted. Based on the exhibit, how many approvals are required?

Accepted Answer

2. The exhibit (not shown here) typically defines approval thresholds for purchase orders. A $15,000 PO exceeds a lower threshold (e.g., $10,000) but is below a higher threshold (e.g., $20,000), triggering two sequential approvals—one from a manager and one from a director—based on the workflow configuration in Dynamics 365 Finance and Operations.

Answer

3

Answer

1

Answer

0 (auto-approve)