MB-920 Describe Dynamics 365 Finance Practice Test 11 — 15 Questions

Question 1

A retail company uses Dynamics 365 Finance and wants to implement Copilot (AI-powered assistant) to help the finance team analyze financial data and generate insights. Which feature in Dynamics 365 Finance provides Copilot capabilities?

Accepted Answer

Copilot in finance and operations. Copilot in finance and operations provides AI-powered analysis and insights. Option A is a general concept, Option B is for reporting, Option D is for analytics, but Copilot is the specific feature.

Answer

Power BI embedded

Answer

Financial reporting

Answer

AI Builder

Question 2

Which TWO of the following are valid modules in Dynamics 365 Finance? (Select two.)

Accepted Answer

Accounts payable. Accounts payable and Budgeting are core modules in Dynamics 365 Finance. Option C is a system, not a module. Option D is a Power Platform component. Option E is not a standard module.

Answer

Customer relationship management

Answer

Project management

Answer

Power Apps

Question 3

Which THREE actions can be performed in the General ledger module of Dynamics 365 Finance? (Select three.)

Accepted Answer

Perform currency revaluation. Posting journal entries, managing chart of accounts, and performing currency revaluation are all done in General ledger. Option D is in Accounts payable. Option E is in Tax module.

Answer

Configure sales tax codes

Answer

Process vendor invoices

Question 4

Which TWO of the following are required to set up a consolidation in Dynamics 365 Finance? (Select two.)

Accepted Answer

A consolidation company. A consolidation company and conversion rate determination are required. Option C is optional, not required. Option D is not required for consolidation. Option E is for reporting.

Answer

Reporting tree

Answer

Elimination rules

Answer

Budget plan templates

Question 5

Your organization is implementing Dynamics 365 Finance. They need to ensure that financial transactions comply with local regulatory requirements for electronic invoicing. Which feature should they use?

Accepted Answer

Electronic reporting (ER). Electronic reporting (ER) allows configuring electronic documents for different countries/regions, including electronic invoices. Option A is correct because ER is the tool for generating electronic documents. Option B is wrong because it is a data entity framework. Option C is wrong because it is for reporting. Option D is wrong because it is for payment formats.

Answer

Payment formats

Answer

Financial reporting

Answer

Data management

Question 6

A company uses Dynamics 365 Finance. The finance team notices that the general ledger balances do not match the subsidiary ledger balances for accounts payable. What should they investigate first?

Accepted Answer

Unposted vendor invoices and payments. The most common cause is unposted invoices or payments that are still in draft or pending posting. Option A is correct. Option B is wrong because the process automation framework is not the cause. Option C is wrong because posting profiles are for transaction posting but not for this mismatch. Option D is wrong because the audit trail would show posted transactions but not unposted ones.

Answer

The audit trail of posted transactions

Answer

The process automation framework

Answer

The posting profiles for vendors

Question 7

Your organization needs to automate the process of sending payment remittance advice to vendors after payments are made. Which Dynamics 365 Finance feature should be configured?

Accepted Answer

Vendor payment journal. The vendor payment journal includes the option to print and send remittance advice automatically. Option B is correct. Option A is wrong because it is for generating payment files. Option C is wrong because it is for vendor invoices. Option D is wrong because it is a feature for purchase orders.

Answer

Purchase order

Answer

Vendor invoice journal

Answer

Payment format

Question 8

A multinational company uses Dynamics 365 Finance with multiple legal entities. They want to process intercompany transactions automatically. What should they configure?

Accepted Answer

Intercompany accounting. Intercompany accounting is the feature that automates intercompany transactions. Option A is correct. Option B is wrong because consolidation is for combining financials, not for day-to-day transactions. Option C is wrong because elimination is for removing intercompany balances. Option D is wrong because transfer orders are for inventory transfers.

Answer

Elimination rules

Answer

Consolidations

Answer

Transfer orders

Question 9

A company needs to track the purchase order commitment against the budget in Dynamics 365 Finance. Which feature should they use?

Accepted Answer

Budget control. Budget control tracks commitments and actual expenditures against the budget. Option C is correct. Option A is wrong because it is for encumbrances but not specifically for purchase orders. Option B is wrong because it is for posting definitions. Option D is wrong because it is for recurring transactions.

Answer

Recurring journal

Answer

Transaction posting definitions

Answer

Encumbrance accounting

Question 10

Your Dynamics 365 Finance environment experiences slow performance when running the period closing process. Which approach should you recommend to improve performance?

Accepted Answer

Run period closing tasks as batch jobs with multiple threads. Batch processing with multiple threads can speed up the period closing by parallelizing tasks. Option B is correct because batch jobs can be set up to run concurrently. Option A is wrong because archival is for old data, not for immediate performance. Option C is wrong because increasing entity size may worsen performance. Option D is wrong because it is for data sharing, not performance.

Answer

Increase the maximum batch group size

Answer

Archive historical data

Answer

Use data sharing to distribute closing tasks across legal entities

Question 11

A company wants to use AI to predict customer payment times in Dynamics 365 Finance. Which feature should they enable?

Accepted Answer

Customer payment predictions. Customer payment predictions use AI to forecast when customers will pay invoices. Option A is correct. Option B is wrong because it is for reducing invoice processing time. Option C is wrong because it is for cash flow forecasting. Option D is wrong because it is for financial reporting.

Answer

Cash flow forecasting

Answer

Financial reporting

Answer

Invoice capture

Question 12

Your organization uses Dynamics 365 Finance. The controller wants to allow users to enter journal entries but prevent them from posting journals that are out of balance. What should you configure?

Accepted Answer

Journal names setup. Journal names have parameters to control behavior, including requiring balanced journals before posting. Option C is correct. Option A is wrong because it is for approval, not balance enforcement. Option B is wrong because it is for user permissions. Option D is wrong because it is for period access.

Answer

Journal approval workflow

Answer

Financial period close

Answer

User role permissions

Question 13

A company is implementing Dynamics 365 Finance and needs to comply with the Sarbanes-Oxley (SOX) act. Which feature should they use to enforce separation of duties?

Accepted Answer

Security roles and duties. Segregation of duties in Dynamics 365 Finance is managed through security roles and duties. Option D is correct. Option A is wrong because it is for tracking changes. Option B is wrong because it is for period closing. Option C is wrong because it is for electronic documents.

Answer

Electronic reporting

Answer

Audit trail

Answer

Batch job

Question 14

Which TWO features in Dynamics 365 Finance help organizations comply with international accounting standards such as IFRS? (Select TWO.)

Accepted Answer

Multiple posting layers. Option A is correct because dual currency support enables reporting in multiple currencies. Option C is correct because multiple posting layers allow parallel accounting standards. Option B is wrong because fixed asset management is not specifically for IFRS. Option D is wrong because budget control is for internal budget management. Option E is wrong because vendor payments are not related to compliance.

Answer

Vendor payment proposal

Answer

Budget control

Answer

Fixed asset management

Question 15

Which THREE components are typically part of the general ledger setup in Dynamics 365 Finance? (Select THREE.)

Accepted Answer

Chart of accounts. Option A is correct because chart of accounts is the foundation. Option C is correct because financial dimensions are used for reporting. Option E is correct because main accounts are part of the chart of accounts. Option B is wrong because it is a subledger. Option D is wrong because it is for payments.

Answer

Payment schedule

Answer

Customer payment journal