MB-920 Multiple Select — 20 Questions

Question 1

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.

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Production control

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Sales order management

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Inventory management

Question 2

Which THREE features are part of Dynamics 365 Supply Chain Management? (Choose three.)

Accepted Answer

Transportation management. Transportation management is a core feature of Dynamics 365 Supply Chain Management that handles inbound and outbound shipping, freight rating, routing, and carrier selection. It integrates with warehouse management to optimize delivery schedules and costs, making it a key supply chain capability.

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Human resources

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Budgeting

Question 3

Which TWO features are part of Dynamics 365 Supply Chain Management? (Select two.)

Accepted Answer

Transportation management. Transportation management is a core feature of Dynamics 365 Supply Chain Management that enables companies to manage inbound and outbound transportation, including route planning, carrier selection, freight reconciliation, and shipment tracking. It integrates with warehouse management to optimize logistics and reduce shipping costs.

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Commerce

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Human Resources

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Project Operations

Question 4

Which THREE features are available in Dynamics 365 Finance and Operations to support financial reporting?

Accepted Answer

Default financial dimensions. Option A (Default financial dimensions) is correct because financial dimensions are the core building blocks that let transactions be tagged with cost centers, departments, projects, and other segments, and default dimensions automatically populate these segments on ledger entries so reports can slice balances by dimension. Option B (Budget control) is correct because it enforces spending limits against budget register entries and produces budget vs. actual reporting, which is a fundamental financial reporting capability in Dynamics 365 Finance and Operations. Option E (Financial reporting (management reporter)) is correct because it is the dedicated reporting tool that generates balance sheets, income statements, cash flow statements, and other financial statements from ledger and dimension data. Option C (Warehouse slotting) is incorrect because it is a supply chain management feature for optimizing warehouse storage locations, not a financial reporting feature. Option D (Production scheduling) is incorrect because it belongs to manufacturing and production control for sequencing jobs and operations, and has no role in financial reporting.

Answer

Warehouse slotting

Answer

Production scheduling

Question 5

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

Accepted Answer

Accounts payable. Accounts payable is a core financial management capability in Dynamics 365 Finance and Operations. It manages vendor invoices, payments, and expense tracking, ensuring accurate liability recording and timely disbursements. This module integrates directly with the general ledger to maintain financial integrity.

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Field service

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Project management

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Warehouse management

Question 6

Which TWO are benefits of using Dynamics 365 Supply Chain Management with IoT integration?

Accepted Answer

Real-time asset tracking. Option C (Real-time asset tracking) is correct because IoT integration in Dynamics 365 Supply Chain Management streams telemetry from connected devices and sensors into the system, allowing inventory, containers, and other assets to be monitored and located continuously as they move through the supply chain. Option E (Predictive maintenance on equipment) is correct because IoT sensor data (vibration, temperature, usage hours) feeds into Dynamics 365 Supply Chain Management's asset management capabilities, enabling condition-based alerts and maintenance scheduling before equipment fails. The remaining options do not belong: A (Real-time customer credit check) is a finance/credit management function unrelated to IoT device data, B (Vendor negotiation) is a procurement relationship activity performed by people rather than an IoT-driven benefit, and D (Automated financial closing) is a financial period-end process that does not depend on IoT telemetry.

Answer

Real-time customer credit check

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Vendor negotiation

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Automated financial closing

Question 7

Which THREE of the following are valid warehouse management processes in Dynamics 365 Supply Chain Management?

Accepted Answer

Shipping. In Dynamics 365 Supply Chain Management, the core warehouse management processes are inbound receiving, outbound shipping, and internal picking, so options A (Shipping), C (Picking), and D (Receiving) are correct. Receiving handles inbound registration and put-away of arriving goods, picking handles the retrieval of items from storage locations to fulfill demand, and shipping handles the final outbound staging, packing, and loading of goods to customers. Budgeting (B) is a financial planning function in Finance, not a warehouse execution process, and invoicing (E) is an accounts receivable/finance activity rather than a warehouse operation.

Answer

Budgeting

Answer

Invoicing

Question 8

Which THREE of the following are components of the Dynamics 365 Commerce architecture?

Accepted Answer

Retail Server. Retail Server (A) is a core component of the Dynamics 365 Commerce architecture, acting as the middle-tier service that exposes commerce APIs to point of sale (POS), e-commerce, and other clients. Commerce Data Exchange (B) is also a core component, providing the asynchronous data synchronization framework (via CDX jobs such as Download and Upload) between the headquarters (HQ) and channel databases. Channel database (E) is likewise a core architectural component, as each retail channel (e.g., store or online store) has its own channel database that stores channel-specific data and syncs with HQ through CDX. Azure Data Lake (C) and Power BI (D) are not components of the Commerce architecture itself; they are separate Azure/Microsoft analytics and reporting services that may integrate with Dynamics 365 Commerce but are not part of its core architecture.

Answer

Azure Data Lake

Answer

Power BI

Question 9

A company uses Dynamics 365 Project Operations. They need to track project costs and revenue. Which THREE components are essential?

Accepted Answer

Time and expense entry. Time and expense entry (B) is essential because Project Operations captures actual labor and non-labor costs through timesheets and expense reports, which feed the project's cost and revenue actuals. Revenue recognition (C) is essential because Project Operations must recognize revenue for projects, supporting both time-and-materials and fixed-price billing methods to correctly reflect earned revenue. Project cost tracking (D) is essential because the core requirement is to monitor project costs against budgets, including actuals from time, expenses, and materials, enabling profitability analysis. Resource management (A) is not among the marked correct answers, and while useful for staffing, it is not strictly essential to tracking costs and revenue. Fixed asset management (E) is unrelated to project cost and revenue tracking, as it concerns depreciating capital assets rather than project financials.

Answer

Resource management

Answer

Fixed asset management

Question 10

Which TWO of the following are valid project types in Dynamics 365 Project Operations? (Choose two.)

Accepted Answer

Time and Material. In Dynamics 365 Project Operations, the two valid project types are Time and Material (option B) and Fixed Price (option D). Time and Material projects bill the customer based on actual time and materials consumed, using chargeable and non-chargeable transaction types, and are the default project type when creating a project. Fixed Price projects bill the customer a predetermined contract amount regardless of actual costs, and they use billing milestones or fixed-price invoice schedules to recognize revenue. Options A (External), C (Internal), and E (Investment) are not project types in Project Operations; while internal or investment projects may be modeled using non-billable Time and Material projects, they are not distinct project type values in the system.

Answer

External

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Internal

Answer

Investment

Question 11

A company is implementing Dynamics 365 Finance and needs to manage vendor payments efficiently. Which TWO features should be used to automate payment processing and reduce manual effort?

Accepted Answer

Electronic payment formats. Electronic payment formats (A) are correct because they let Dynamics 365 Finance generate payment files in the bank-specific layouts required for electronic funds transfer, eliminating the manual creation of payment files and enabling automated transmission to the bank. Payment proposals (D) are correct because they let you generate suggested vendor payments based on criteria such as due date, cash discount, and vendor group, which automates the selection of invoices to pay and reduces manual effort in deciding what to pay. Vendor invoice pool (B) is a holding area for pending vendor invoices awaiting approval or matching, not a payment automation feature. Vendor hold (C) is used to block a vendor from being included in transactions or payments, which restricts rather than automates processing. Payment calendar (E) defines valid payment dates and due date calculations, but it does not itself automate payment generation or file creation.

Answer

Vendor invoice pool

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Vendor hold

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Payment calendar

Question 12

A company uses Dynamics 365 Finance and Operations. They need to set up financial dimensions for cost centers and departments. Which TWO statements about financial dimensions are correct?

Accepted Answer

Financial dimensions are linked to main accounts.. Financial dimensions are linked to main accounts to provide additional segmentation and analytical capabilities in Dynamics 365 Finance and Operations. This linkage allows transactions to be tracked and reported across multiple dimensions, such as cost centers and departments, enabling detailed financial analysis and compliance.

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Financial dimensions are automatically derived from vendor master.

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Financial dimensions are used only in the chart of accounts.

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Financial dimensions cannot be used with advanced rules.

Question 13

Which TWO of the following are features of the Cash and bank management module in Dynamics 365 Finance?

Accepted Answer

Cash flow forecasting. Option B (Cash flow forecasting) is correct because the Cash and bank management module in Dynamics 365 Finance provides cash flow forecasting functionality, allowing organizations to project future cash inflows and outflows based on ledger, vendor, customer, and other transaction data. Option D (Bank reconciliation) is correct because the module includes bank reconciliation features that let users match bank statements against ledger bank transactions, manage unreconciled items, and reconcile bank accounts. Option A (Credit management) is incorrect because credit management is a separate module in Dynamics 365 Finance used for managing customer credit limits, credit holds, and collections, not a feature of Cash and bank management. Option C (Budget control) is incorrect because budget control is part of the Budgeting module and is used to check and enforce budget availability on transactions. Option E (Fixed asset depreciation) is incorrect because depreciation is handled in the Fixed assets module, not in Cash and bank management.

Answer

Credit management

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Budget control

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Fixed asset depreciation

Question 14

A company uses Dynamics 365 Commerce. Which TWO features are available to enhance the customer shopping experience online?

Accepted Answer

Product recommendations powered by AI. Dynamics 365 Commerce includes AI-powered product recommendations that analyze customer behavior, purchase history, and browsing patterns to suggest relevant items, directly enhancing the online shopping experience. Option B is correct because the customer loyalty program feature allows retailers to create and manage loyalty schemes, points, and rewards, which increases customer engagement and repeat purchases online.

Answer

Purchase order management

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Inventory counting

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Vendor invoice processing

Question 15

You are a finance manager at Contoso Ltd. The company is implementing Dynamics 365 Finance and needs to set up the chart of accounts. Which TWO statements about the chart of accounts are correct?

Accepted Answer

The chart of accounts is the foundation for financial reporting.. Option B is correct because the chart of accounts defines the structure of all main accounts used to record financial transactions, and it directly drives the general ledger, trial balance, financial dimensions, and all financial statements and reporting in Dynamics 365 Finance. Option E is correct because main accounts in Dynamics 365 Finance are stored in a shared chart of accounts table and can be referenced by multiple legal entities, allowing a consistent account structure across organizations while each legal entity maintains its own balances. Option A is incorrect because posting profiles are required to determine which main accounts are used for specific transaction types (such as customer, vendor, and inventory postings); without them, transactions cannot be posted correctly. Option C is incorrect because Dynamics 365 Finance does not limit a chart of accounts to 100 main accounts; the practical limit is far higher (tens of thousands of accounts). Option D is incorrect because main accounts are not created automatically when a legal entity is created; they must be created manually or imported into the chart of accounts.

Answer

Posting profiles are optional for posting transactions.

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A chart of accounts can contain a maximum of 100 main accounts.

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Main accounts are automatically created when a legal entity is created.

Question 16

A company is implementing Dynamics 365 Customer Service and wants to use Copilot to improve agent productivity. Which TWO actions can Copilot perform in the customer service workspace?

Accepted Answer

Draft an email response to a customer based on the conversation context. Option C is correct because Copilot in Dynamics 365 Customer Service can generate a draft email reply using the context of the ongoing conversation, which agents can then review and edit before sending. Option E is correct because Copilot can produce a case summary that highlights key details, customer interactions, and history when an agent opens a case, helping them get up to speed quickly. Option A is not correct because automatic case creation from incoming email is handled by rule-based automation such as automatic record creation and update rules, not by Copilot. Option B is not correct because generating a knowledge article from a resolved case is not a Copilot capability in the customer service workspace. Option D is not correct because scheduling a follow-up call requires agent action or workflow automation, not Copilot.

Answer

Create a new case automatically when an email arrives

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Create a knowledge article from a resolved case

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Schedule a follow-up call with the customer

Question 17

Which TWO of the following are capabilities of Dynamics 365 Supply Chain Management?

Accepted Answer

Transportation management. Transportation management (B) is a core capability of Dynamics 365 Supply Chain Management, providing inbound and outbound load planning, rate and route configuration, carrier management, and freight reconciliation through the Transportation management module. Demand forecasting (C) is also a native Supply Chain Management capability, delivered via master planning and the Demand forecasting feature that uses historical data and Azure Machine Learning to generate item-level forecasts consumed by planning runs. Customer relationship management (A) belongs to Dynamics 365 Sales/Customer Engagement, not Supply Chain Management. Project accounting (D) is provided by Dynamics 365 Project Operations (and previously Finance project management and accounting), not as a Supply Chain Management capability. Human resources management (E) is delivered by Dynamics 365 Human Resources, so it is not part of Supply Chain Management.

Answer

Customer relationship management

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Project accounting

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Human resources management

Question 18

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

Accepted Answer

Vendor invoice automation. Vendor invoice automation (C) is correct because it uses the Vendor invoice automation feature in Accounts payable to automatically match incoming vendor invoices to purchase orders and product receipts, run invoice validation, and route exceptions to workflow, thereby reducing manual AP data entry. Payment proposal (E) is correct because the Payment proposal/Vendor payment proposal process in Accounts payable lets you generate, review, and post vendor payment journals automatically based on criteria such as due date, cash discount, and payment method, which automates the outbound payment side of AP. Collections management (A) is incorrect because it is an Accounts receivable feature for managing customer collections, not vendor payables. Bank reconciliation (B) is incorrect because it reconciles bank statements to ledger transactions and does not automate vendor invoice or payment processing. Customer payment predictions (D) is incorrect because it is an Accounts receivable AI feature that predicts when customers will pay, which is unrelated to automating accounts payable.

Answer

Collections management

Answer

Bank reconciliation

Answer

Customer payment predictions

Question 19

A Dynamics 365 administrator is configuring Copilot features for the sales team. Which TWO actions should the administrator take to ensure responsible AI usage?

Accepted Answer

Enable the feedback mechanism to allow users to report inaccurate responses. Enabling the feedback mechanism allows users to report inaccurate or inappropriate Copilot responses, which is a core requirement for responsible AI usage. This feedback loop helps administrators identify and correct issues, ensuring the AI system remains trustworthy and compliant with Microsoft's responsible AI principles. Without this mechanism, the organization would lack visibility into potential harms or inaccuracies generated by the AI.

Answer

Disable access to all customer data to prevent Copilot from using it

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Restrict Copilot to only respond in English

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Encrypt all data at rest and in transit

Question 20

Which TWO features are part of Dynamics 365 Finance shared financial management? (Select exactly two.)

Accepted Answer

Accounts payable. Accounts payable (Option C) is a core component of Dynamics 365 Finance shared financial management, handling vendor invoices, payments, and expense tracking across legal entities. It is part of the shared financial management module that provides centralized processing of payables, ensuring consistency and compliance in multi-company environments.

Answer

Fixed assets

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Budget control

Answer

Cash flow forecasting