MB-920 Describe Dynamics 365 Finance Practice Test 4 — 15 Questions

Question 1

A company uses Dynamics 365 Finance. The finance team needs to generate financial reports that combine data from multiple legal entities into a single report. Which tool should they use?

Accepted Answer

Financial Reporting (Management Reporter). Option B is correct because Financial Reporting (Management Reporter) can combine data from multiple legal entities in a single report using row definitions and reporting trees. Option A is wrong because Power BI requires separate data integration. Option C is wrong because Excel integration can only access one entity at a time. Option D is wrong because general ledger inquiry shows one entity's data.

Answer

General ledger inquiry

Answer

Power BI

Answer

Excel integration

Question 2

A company uses Dynamics 365 Finance. The accounts receivable team needs to send payment reminders to customers automatically. Which feature should they configure?

Accepted Answer

Collection letters. Option C is correct because collection letter feature in Dynamics 365 Finance automatically sends payment reminders to customers. Option A is wrong because interest notes are for charging interest on overdue payments. Option B is wrong because customer payment journals record payments. Option D is wrong because invoice journals record invoices.

Answer

Customer payment journals

Answer

Interest notes

Answer

Invoice journals

Question 3

A company uses Dynamics 365 Finance. The finance team notices that the general ledger journal balance does not equal the sum of debits and credits. What could cause this discrepancy?

Accepted Answer

Unbalanced journal entry. Option B is correct because unbalanced journal entries can cause the general ledger balance to not match the sum of debits and credits. Option A is wrong because posting profiles affect account mapping, not balancing. Option C is wrong because voucher series assign numbers, not affect balance. Option D is wrong because user permissions control access, not balances.

Answer

Incorrect voucher number series

Answer

Incorrect posting profile configuration

Answer

User permissions

Question 4

A company uses Dynamics 365 Finance and plans to implement Copilot for Finance to automate vendor invoice processing. Which prerequisite must be configured to enable AI-powered invoice matching?

Accepted Answer

AI Builder enabled with Power Apps license. Option A is correct because AI Builder requires a Power Apps license and must be configured for Copilot capabilities. Option B is wrong because data entities are for data import/export, not AI. Option C is wrong because workflow is for approval processes. Option D is wrong because electronic reporting is for document generation.

Answer

Electronic reporting format for invoices

Answer

Workflow for invoice approval

Answer

Data entities configured for import/export

Question 5

Which TWO actions can you perform using the Financial Reporting tool in Dynamics 365 Finance?

Accepted Answer

Combine data from multiple legal entities in a single report. Options A and B are correct. Financial Reporting can produce balance sheets and income statements, and can combine data from multiple legal entities using reporting trees. Option C is wrong because posting journal entries is a general ledger function. Option D is wrong because configuring budget control is a separate feature. Option E is wrong because configuring payment terms is done in accounts payable.

Answer

Configure payment terms for vendors

Answer

Configure budget control rules

Answer

Post journal entries to the general ledger

Question 6

Which THREE elements are required when setting up budget control in Dynamics 365 Finance?

Accepted Answer

Budget interval. Options A, B, and D are correct. Budget control setup requires budget intervals, budget thresholds, and budget control rules. Option C is wrong because budget plan templates are for planning, not control. Option E is wrong because reporting currencies are optional and not required for budget control.

Answer

Budget plan template

Answer

Reporting currency

Question 7

Which TWO features in Dynamics 365 Finance can help automate accounts payable processes?

Accepted Answer

Vendor invoice automation. Options A and C are correct. Vendor invoice automation automatically processes invoices, and payment proposals generate payments based on due dates. Option B is wrong because collections management is for accounts receivable. Option D is wrong because bank reconciliation is for cash management. Option E is wrong because customer payment predictions is for accounts receivable.

Answer

Collections management

Answer

Bank reconciliation

Answer

Customer payment predictions

Question 8

Refer to the exhibit. The budget control configuration shows that budget checks are enabled for purchase orders and vendor invoices. A purchase order is created for a budget amount that is 90% of the available budget. What happens during budget checking?

Accepted Answer

A warning is displayed but the purchase order can be posted.. Option B is correct because the threshold warning is set at 80%, so 90% triggers a warning but not an error (error is 100%). Option A is wrong because the error threshold is 100%. Option C is wrong because budget overrun is not allowed with error threshold. Option D is wrong because the check is performed.

Answer

The purchase order is blocked from posting.

Answer

The purchase order is allowed and budget is overrun.

Answer

The budget check is skipped because purchase orders are not configured.

Question 9

Refer to the exhibit. A company in Germany configures electronic reporting to generate ISO 20022 credit transfer payment files. The finance team reports that the generated file fails validation by the bank. What is the most likely cause?

Accepted Answer

The country context is set incorrectly for the bank's requirements.. Option A is correct because the country context is set to DEU (Germany), but ISO 20022 credit transfer may have specific requirements not met by the standard format. Option B is wrong because version 10.0.30 is current. Option C is wrong because model mapping is required. Option D is wrong because the format name is correct.

Answer

The model mapping is missing required fields.

Answer

The format name is incorrect for credit transfers.

Answer

The version number is outdated.

Question 10

Refer to the exhibit. A user tries to post a journal with the account string 1234567-IT-CC001. The general ledger account structure requires main account (7 characters), department (3 characters), and cost center (4 characters). The system rejects the entry. What is the most likely reason?

Accepted Answer

The department segment length is incorrect.. Option C is correct because the department value 'IT' is 2 characters, but the structure expects 3 characters. Option A is wrong because main account length is correct (7). Option B is wrong because cost center is correct (4). Option D is wrong because the value exists.

Answer

The cost center segment length is incorrect.

Answer

The main account segment length is incorrect.

Answer

The department value does not exist in the dimension values.

Question 11

A manufacturing company uses Dynamics 365 Finance and Operations. The finance team needs to ensure that all vendor invoices are approved by a manager before payment. What feature should be configured to enforce this approval workflow?

Accepted Answer

Vendor invoice workflow. Option B is correct because the vendor invoice approval workflow in Dynamics 365 Finance enforces manager approval before payment. Option A is wrong because vendor collaboration is for external vendors to submit invoices, not approval. Option C is wrong because budget control manages budget funds, not invoice approval. Option D is wrong because the financial journal workflow is for journal entries, not vendor invoices.

Answer

Budget control configuration

Answer

Financial journal workflow

Answer

Vendor collaboration workspace

Question 12

A company needs to generate financial statements that comply with local accounting standards in multiple countries. Which Dynamics 365 Finance module should be used to define and manage these reporting requirements?

Accepted Answer

Financial reporting. Option D is correct because the Financial reporting module in Dynamics 365 Finance allows creation and management of financial statements for multiple reporting standards. Option A is wrong because General ledger is the core ledger but does not manage local reporting standards directly. Option B is wrong because Budgeting is for budget planning. Option C is wrong because Accounts payable is for vendor transactions.

Answer

Budgeting

Answer

General ledger

Answer

Accounts payable

Question 13

A company uses Dynamics 365 Finance and has multiple legal entities. They need to consolidate financial data from all entities into a single reporting entity for quarterly reports. What feature should be used to perform this consolidation?

Accepted Answer

Consolidations. Option C is correct because the Consolidations module in Dynamics 365 Finance is designed to consolidate financial data from multiple legal entities. Option A is wrong because Intercompany accounting handles transactions between entities, not consolidation. Option B is wrong because the General ledger does not consolidate automatically. Option D is wrong because the Financial reporting module uses data from the ledger but does not perform the consolidation process itself.

Answer

Intercompany accounting

Answer

Financial reporting

Answer

General ledger

Question 14

An organization wants to automate the process of reconciling bank transactions with entries in Dynamics 365 Finance. Which feature should be used?

Accepted Answer

Bank reconciliation. Option D is correct because the Bank reconciliation module in Dynamics 365 Finance automates matching bank statement lines to ledger entries. Option A is wrong because Cash and bank management is a module that includes bank reconciliation, but not the specific feature. Option B is wrong because Advanced bank reconciliation is an optional add-on that provides more automation, but the standard bank reconciliation feature is available in Cash and bank management. Option C is wrong because Payment journal is for recording payments, not reconciliation.

Answer

Cash and bank management

Answer

Advanced bank reconciliation

Answer

Payment journal

Question 15

A company using Dynamics 365 Finance needs to ensure that purchase orders exceed a certain amount require additional approval from a director. Which feature should be configured?

Accepted Answer

Purchase order workflow. Option A is correct because the purchase order workflow can be configured with conditional approval rules based on amount. Option B is wrong because an approval journal is not a standard Dynamics 365 concept. Option C is wrong because the budget manager role is for budget control, not purchase order approval. Option D is wrong because procurement and sourcing is a module that includes purchase order workflows, but the specific feature is the workflow itself.

Answer

Approval journal

Answer

Procurement and sourcing parameters

Answer

Budget manager role