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HomeCertificationsMB-920TopicsDescribe Dynamics 365 Finance
Free · No Signup RequiredMicrosoft · MB-920

MB-920 Describe Dynamics 365 Finance Practice Questions

20+ practice questions focused on Describe Dynamics 365 Finance — one of the most tested topics on the Microsoft Dynamics 365 Fundamentals ERP MB-920 exam. Each question includes a detailed explanation so you learn why the right answer is correct.

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Exam Domains

Describe Dynamics 365 Supply Chain ManagementDescribe Dynamics 365 FinanceDescribe the core capabilities of the finance and operations appsDescribe shared features and Copilot capabilitiesDescribe Dynamics 365 Human ResourcesDescribe Dynamics 365 CommerceDescribe Dynamics 365 Project OperationsAll domains →

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Sample Describe Dynamics 365 Finance Questions

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1.

A company is implementing Dynamics 365 Finance and needs to configure a chart of accounts that supports multiple legal entities with different fiscal requirements. Which structure should be used?

A.Use a shared chart of accounts with separate fiscal calendars per legal entity.
B.Use a single shared chart of accounts with one shared fiscal calendar.
C.Use main accounts only without dimensions.
D.Create a separate chart of accounts for each legal entity.

Explanation: A shared chart of accounts is the recommended approach in Dynamics 365 Finance when multiple legal entities must operate under different fiscal requirements. By sharing the chart of accounts but assigning separate fiscal calendars per legal entity, the organization maintains a consistent account structure across entities while allowing each entity to comply with its own fiscal year, period definitions, and closing schedules. This balances standardization with regulatory flexibility.

2.

A company uses Dynamics 365 Finance and needs to create a vendor payment that includes a discount of $50 if paid within 10 days. The invoice is for $1,000. The payment is made on day 8. What should the payment amount be?

A.$1,000
B.$900
C.$950
D.$1,050

Explanation: Option C is correct because the vendor payment is made within the 10-day discount period, so the $50 discount applies to the $1,000 invoice. The payment amount is $1,000 - $50 = $950. In Dynamics 365 Finance, this is handled through the cash discount setup on the vendor payment terms, which automatically calculates the discounted amount when the payment date falls within the discount window.

3.

A company is implementing Dynamics 365 Finance and needs to automate the reconciliation of bank transactions. Which feature should be used to match bank statement lines with open bank document lines based on rules?

A.Bank account reconciliation
B.Payment proposal
C.Automatic settlement
D.Advanced bank reconciliation

Explanation: Advanced bank reconciliation in Dynamics 365 Finance allows you to import bank statement lines and automatically match them to open bank document lines (such as checks, deposits, and transfers) using user-defined matching rules. This feature supports rule-based matching (e.g., by amount, date, or reference) and handles complex scenarios like partial matches or tolerance thresholds, making it the correct choice for automating bank transaction reconciliation.

4.

A company needs to ensure that purchase orders cannot be created without an approved vendor. Which configuration should be used?

A.Create a purchase order approval workflow
B.Set 'Require approval for vendor' to Yes in Procurement and sourcing parameters
C.Enable 'Invoice matching validation'
D.Set vendor status to Active

Explanation: Setting 'Require approval for vendor' to Yes in Procurement and sourcing parameters ensures that a purchase order cannot be created unless the vendor is in an approved status. This configuration enforces a prerequisite check at the time of purchase order creation, preventing unapproved vendors from being used.

5.

A company uses Dynamics 365 Finance. The CFO wants to analyze actuals vs budget across multiple departments and cost centers. Which THREE components must be set up?

A.Budget control configuration
B.Budget model
C.Financial dimensions
D.Budget cycle

Explanation: The budget model is a required component because it defines the structure for how budget data is organized and calculated, such as by department or cost center. Without a budget model, the system cannot aggregate or compare actuals against budgeted amounts across different financial dimensions. It serves as the foundational framework for budget planning and analysis.

+15 more Describe Dynamics 365 Finance questions available

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How to master Describe Dynamics 365 Finance for MB-920

1. Baseline your knowledge

Start with 10 questions to gauge your current understanding of Describe Dynamics 365 Finance. This tells you whether you need a concept refresher or just practice.

2. Review every explanation

For each question — right or wrong — read the full explanation. Understanding why an answer is correct is more valuable than knowing the answer itself.

3. Focus on exam traps

Describe Dynamics 365 Finance questions on the MB-920 frequently use trap wording. Look for subtle differences in answers that test your precision, not just general knowledge.

4. Reach 80% consistently

Do repeated sessions until you score 80%+ three times in a row. Then move to mixed-mode practice to test cross-topic recall under realistic conditions.

Frequently asked questions

How many MB-920 Describe Dynamics 365 Finance questions are on the real exam?

The exact number varies per candidate. Describe Dynamics 365 Finance is tested as part of the Microsoft Dynamics 365 Fundamentals ERP MB-920 blueprint. Practicing with targeted Describe Dynamics 365 Finance questions ensures you can handle any format or difficulty that appears.

Are these MB-920 Describe Dynamics 365 Finance practice questions free?

Yes. Courseiva provides free MB-920 practice questions across all exam topics and domains. The platform includes topic-based practice, mock exams, missed-question review, bookmarked questions, and readiness tracking — no account required.

Is Describe Dynamics 365 Finance one of the harder MB-920 topics?

Difficulty is subjective, but Describe Dynamics 365 Finance is a high-priority exam concept tested in multiple ways — direct recall, scenario analysis, and command-output interpretation. Consistent practice is the best way to build confidence.

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Topic Info

Topic

Describe Dynamics 365 Finance

Exam

MB-920

Questions available

20+