MB-920 Describe Dynamics 365 Finance Practice Test 8 — 15 Questions

Question 1

Refer to the exhibit. A Dynamics 365 Finance administrator runs the PowerShell command shown. What is the expected output?

Accepted Answer

A list of configuration parameters for the General ledger module. The command retrieves configuration parameters for the General ledger module, specifically the "Ledger" configuration. Option A is wrong because it retrieves a single setting, not all. Option C is wrong because it doesn't return module list. Option D is wrong because it doesn't run diagnostics.

Answer

The current value of the Ledger configuration setting

Answer

A list of all modules in Dynamics 365 Finance

Answer

An error because the command is invalid

Question 2

Refer to the exhibit. A Dynamics 365 Finance analyst runs the KQL query shown against the FinanceTransactions table. What is the result?

Accepted Answer

Top 5 account categories by total amount for 2023. The query filters for Year == 2023, groups by AccountCategory, sums the Amount for each category, orders by total amount descending, and uses take 5 to return the top 5 categories. Option A is incorrect because it says 'all account categories' but the query only returns the top 5. Option B is incorrect because it suggests grouping by month, while the query groups by AccountCategory. Option C is incorrect because it refers to 2024, but the filter is for 2023.

Answer

All account categories with their total amounts for 2023

Answer

Monthly total amounts for each account category in 2023

Answer

Top 5 account categories by total amount for 2024

Question 3

A manufacturing company uses Dynamics 365 Finance to manage its inventory. The company wants to ensure that the cost of raw materials is updated automatically when purchase orders are invoiced. Which costing method should the company use?

Accepted Answer

Moving average. Standard costing updates costs based on predetermined standards, not automatically from purchase invoices. Weighted average and moving average can update on invoice posting. FIFO tracks actual cost layers. Moving average is commonly used for real-time cost updates.

Answer

FIFO

Answer

Standard costing

Answer

Weighted average

Question 4

A company uses Dynamics 365 Finance to manage its fixed assets. The accountant needs to post a depreciation adjustment for a previous fiscal year that has already been closed. What should the accountant use?

Accepted Answer

Depreciation adjustment journal. The fixed asset journal is for routine transactions. Depreciation proposal posts planned depreciation. The depreciation adjustment journal is specifically for correcting prior year depreciation.

Answer

Fixed asset journal

Answer

General journal

Answer

Depreciation proposal

Question 5

A multinational corporation uses Dynamics 365 Finance with multiple legal entities. The controller wants to consolidate financial data from all subsidiaries into a single reporting entity. Which feature should be used to perform the consolidation?

Accepted Answer

Consolidate [Online]. Consolidate [Eliminate] is for intercompany eliminations. Consolidate [Inquire] is for viewing. Consolidate [Transfer] only moves data. Consolidate [Online] performs the actual consolidation.

Answer

Consolidate [Transfer]

Answer

Consolidate [Eliminate]

Answer

Consolidate [Inquire]

Question 6

A company uses Dynamics 365 Finance to manage its accounts payable. The AP clerk receives an invoice that does not have a purchase order. Which document type should the clerk use to record the invoice?

Accepted Answer

Vendor invoice journal. Purchase order invoice requires a PO. Vendor invoice journal is for invoices without PO. Invoice pool is for hold. Vendor invoice workspace is a landing page.

Answer

Purchase order invoice

Answer

Vendor invoice workspace

Answer

Invoice pool

Question 7

An organization uses Dynamics 365 Finance to manage its cash and bank accounts. The treasurer needs to reconcile a bank statement with the system's bank transactions. Which module should the treasurer use?

Accepted Answer

Cash and bank management. Cash and bank management handles bank reconciliation. Accounts payable and Accounts receivable are for vendor and customer transactions. General ledger is for the chart of accounts.

Answer

Accounts payable

Answer

General ledger

Answer

Accounts receivable

Question 8

A company uses Dynamics 365 Finance and wants to automate the calculation and posting of daily interest on overdue customer invoices. Which feature should be configured?

Accepted Answer

Interest codes. Interest codes define the interest calculation rules. Collection letters are for dunning. Customer posting profiles define posting accounts. Payment schedules define installment plans.

Answer

Payment schedules

Answer

Collection letters

Answer

Customer posting profiles

Question 9

A company uses Dynamics 365 Finance to manage its budget. The finance team wants to prevent users from posting expenses that exceed the available budget. Which budget control configuration is required?

Accepted Answer

Budget control configuration. Budget control configuration enables checking against budget. Budget plans are for planning. Budget register entries are for recording. Budget model is a structure.

Answer

Budget plan

Answer

Budget model

Answer

Budget register entry

Question 10

A retail company uses Dynamics 365 Finance. They want to automatically allocate overhead costs from a cost center to multiple departments based on a predefined percentage. Which costing feature should they use?

Accepted Answer

Cost allocations. Cost allocations distribute costs based on allocation bases. Cost accounting is the module. Overhead calculation is for manufacturing. Cost rollup is for bill of materials.

Answer

Cost accounting

Answer

Overhead calculation

Answer

Cost rollup

Question 11

An organization uses Dynamics 365 Finance for project accounting. They need to bill a customer for a fixed-price project based on a milestone schedule. Which billing method should be used?

Accepted Answer

Fixed-price milestone. Time and material bills actual hours. Fixed-price milestone bills based on predefined milestones. Progress billing is for percentage complete. Cost plus bill is for cost plus contracts.

Answer

Cost plus

Answer

Progress billing

Answer

Time and material

Question 12

A company uses Dynamics 365 Finance. Which TWO features are available in the Cash and Bank Management module?

Accepted Answer

Cash flow forecasting. Bank reconciliation and cash flow forecasting are part of Cash and Bank Management. Fixed assets management is in Fixed assets. Budget control is in Budgeting. Vendor payments are in Accounts payable.

Answer

Vendor payments

Answer

Budget control

Answer

Fixed asset management

Question 13

A company uses Dynamics 365 Finance to manage intercompany transactions. Which THREE steps are required to set up intercompany accounting?

Accepted Answer

Define intercompany partners. You must define intercompany partners, set up elimination rules, and configure intercompany accounting sequences. Creating a consolidation company is a separate process. Setting up budget models is unrelated.

Answer

Create a consolidation company

Answer

Set up budget models

Question 14

A company uses Dynamics 365 Finance. Which TWO types of financial dimensions can be created?

Accepted Answer

Entity-backed dimensions. Custom dimensions are user-defined. Entity-backed dimensions are based on system entities like Cost centers. Fixed dimensions are not a type; they are default dimension values. Main account is an account, not a dimension. Budget dimensions are a concept, not a type.

Answer

Main account

Answer

Fixed dimensions

Answer

Budget dimensions

Question 15

Refer to the exhibit. A finance manager reviews the budget control configuration in Dynamics 365 Finance. The OverBudgetOption is set to 'WarnOnly'. What will happen when a user attempts to post an expense that exceeds the remaining budget?

Accepted Answer

The user will receive a warning but can still post the expense.. The OverBudgetOption 'WarnOnly' allows posting with a warning. 'Block' prevents posting. 'None' disables control. The configuration shows BudgetControlEnabled=true, so control is active.

Answer

The expense will be posted without any warning.

Answer

The expense will be blocked and cannot be posted.

Answer

The budget control will be ignored because OverBudgetOption is set.