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

Question 1

Which TWO benefits does using Lifecycle Services (LCS) provide for Dynamics 365 Finance and Operations implementations? (Choose two.)

Accepted Answer

Providing implementation methodology guidance. Options B and C are correct. Lifecycle Services (LCS) provides implementation methodology guidance (e.g., Microsoft Sure Step) and allows provisioning of cloud-hosted environments for development and testing. Option A is incorrect because custom code development is done in Visual Studio, not a core benefit of LCS. Option D is incorrect because user subscriptions are managed through the Microsoft 365 admin center. Option E is incorrect as AI-powered insights are not a primary feature of LCS.

Answer

Writing custom code

Answer

Managing user subscriptions

Answer

Providing AI-powered insights

Question 2

Refer to the exhibit. A configuration snippet from Dynamics 365 Finance and Operations defines a workflow. What does this workflow do?

Accepted Answer

Require manager approval for purchase orders over $10,000. The workflow configuration in Dynamics 365 Finance and Operations defines a conditional approval step: when a purchase order exceeds $10,000, it is routed to the user's manager for approval. This is a standard workflow condition that triggers a specific approval step based on a monetary threshold, ensuring that high-value orders receive managerial oversight before proceeding.

Answer

Reject purchase orders over $10,000

Answer

Automatically approve all purchase orders under $10,000

Answer

Send all purchase orders to the VP for approval

Question 3

Refer to the exhibit. A Power BI report configuration for Dynamics 365 Finance and Operations shows a data source, measure, filter, and visual. What does this configuration produce?

Accepted Answer

A bar chart of total sales for 2025. The configuration shows a filter set to 'Year = 2025', a measure for 'Total Sales', and a visual type set to 'Bar chart'. This means the report will display a bar chart of total sales specifically for the year 2025, not any other year or a line chart over time.

Answer

A bar chart of total sales for 2024

Answer

A table showing total sales by year

Answer

A line chart of total sales over time

Question 4

Refer to the exhibit. A validation rule configuration for Dynamics 365 Finance and Operations is shown. What happens when a user enters a vendor invoice with an invoice date of tomorrow and a total amount of $100?

Accepted Answer

The date rule fails and the invoice is not saved. The validation rule checks that InvoiceDate <= Today. Since tomorrow's date is greater than today, the date rule fails, and the invoice is not saved. Option A is incorrect because the amount rule does not fail (the total amount is positive $100). Option B is incorrect because the date rule fails, so the invoice is not saved. Option D is incorrect because the date rule fails, not passes.

Answer

The amount rule fails and the invoice is not saved

Answer

Both rules pass and the invoice is saved

Answer

The date rule passes, but the amount rule fails

Question 5

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 6

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 7

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. In Dynamics 365 Commerce integrated with Finance, store transactions are processed through a series of batch jobs. The P-job (Processing job) is responsible for pulling raw transaction data from the channel database into the headquarters (HQ) staging tables. If the P-job distribution is failing, transactions never reach HQ, and therefore cannot be posted to the general ledger, even if statement posting is run later.

Answer

Commerce scheduler is not configured

Answer

Statement posting is not run

Answer

Inventory update is not completed

Question 8

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. 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 9

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

Answer

Management Reporter

Answer

Power BI

Question 10

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 11

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

Answer

Time and attendance

Answer

Human resources

Question 12

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

Answer

Purchase order with drop shipment

Answer

Transfer order

Question 13

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

Answer

Human resources

Answer

Marketing

Question 14

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 15

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

Answer

Sales order management

Answer

Inventory management