MB-310 Practice Test 2 — 10 Questions

Question 1

Which report should you run to verify that the General Ledger balances match the sub-ledger balances?

Accepted Answer

Subledger reconciliation report.. The 'Subledger reconciliation' report is designed to compare the balances in sub-ledgers (such as Accounts Payable or Accounts Receivable) against the corresponding General Ledger accounts. This reconciliation is a fundamental period-end task that identifies discrepancies caused by postings, manual adjustments, or data integrity issues, ensuring that the financial data remains consistent and reliable for statutory reporting and external audits, which is critical for financial health.

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Trial balance report.

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Financial statement report.

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Journal report.

Question 2

Refer to the exhibit. You attempt to post a journal entry, but the system prevents it. How should you resolve this configuration issue to allow posting?

Accepted Answer

Modify the Account structure to make the dimension optional. The error indicates that the account structure mandates a financial dimension for the specified main account. To fix this, you must adjust the Account structure configuration to either make the dimension optional or ensure the journal entry includes the required dimension value. This is a fundamental aspect of financial reporting integrity, ensuring that all ledger entries contain the necessary attributes for accurate trial balance and segment-based financial statement generation.

Answer

Change the main account type to Total

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Disable the financial dimension in the General ledger parameters

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Create a new General journal name

Question 3

When running a consolidation, you notice that the data is not appearing in the consolidated company. What is the first thing you should check?

Accepted Answer

Verify the Consolidation account mapping setup.. The first step in troubleshooting consolidation is to verify the 'Consolidation account' mapping. If the accounts in the subsidiary legal entities are not mapped to the accounts in the consolidation entity, the system cannot translate the financial data, resulting in empty reports. This mapping is the essential bridge between multi-entity financial structures and the consolidated ledger, ensuring that disparate charts of accounts align correctly for reporting purposes.

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Check if the subsidiary periods are closed.

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Validate that the exchange rates are updated.

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Check the batch job history for errors.

Question 4

Which TWO of the following are prerequisites for setting up a vendor payment run using the payment proposal feature? (Choose two)

Accepted Answer

Invoices must have a due date that falls within the proposal criteria.. To generate a payment proposal, the system must have identified vendor invoices that are due or have a discount date approaching. Additionally, the payment method must be correctly configured to define the bank account and file format for the electronic payment. Properly setting up these parameters ensures that the system can accurately filter invoices and create batch payments that meet the organization's cash flow strategy.

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Vendors must be marked as 'On hold' for payment.

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The Vendor invoice must be posted with a 'Disputed' status.

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The vendor must have a credit limit of zero.

Question 5

What is the purpose of the 'Financial dimension sets' in Dynamics 365 Finance?

Accepted Answer

To summarize and report on financial dimension balances.. Financial dimension sets allow you to summarize financial data for reporting and inquiry. By selecting specific dimensions to include in a set, users can view aggregated balances across various business segments. This functionality is essential for management reporting, as it provides the flexibility to slice and dice financial data without the need for complex, custom-built reports, enabling faster decision-making for finance teams.

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To enforce entry requirements during journal creation.

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To define the structure of the chart of accounts.

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To manage intercompany currency conversion rates.

Question 6

When migrating fixed assets into Dynamics 365 Finance, which method ensures that the net book value is correctly stated without triggering an incorrect depreciation calculation for prior periods?

Accepted Answer

Use the Initial acquisition and Accumulated depreciation journals.. To migrate assets, you should use the 'Initial Acquisition' and 'Accumulated Depreciation' posting types in the fixed asset journal. By posting these values directly, you establish the asset's starting cost and history as of the migration date. This approach allows the system to recognize the correct net book value while avoiding the creation of 'phantom' depreciation entries for the time the asset existed before migration.

Answer

Post as a normal acquisition transaction.

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Manually update the net book value field.

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Import assets as expenses.

Question 7

Your company uses 'Bonus depreciation' for tax purposes. Which setup allows for an additional depreciation amount in the first year of an asset's life?

Accepted Answer

Bonus depreciation settings.. Bonus depreciation is configured in the 'Bonus depreciation' setup within the Fixed Asset book. This allows for an accelerated deduction in the first year, which is commonly used to incentivize capital investment. By defining a bonus depreciation percentage or amount, the system automatically calculates this extra expense during the first depreciation run, allowing companies to optimize their tax liabilities in compliance with local tax legislation.

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Depreciation profile.

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Fixed asset group.

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Depreciation convention.

Question 8

Your organization requires that a specific user can only post vendor invoices for a specific department. Which security configuration component should you utilize to enforce this restriction?

Accepted Answer

Extensible Data Security (XDS). Extensible Data Security (XDS) is the standard Dynamics 365 Finance mechanism for restricting access to data based on specific criteria like department codes. Unlike standard role-based security, which controls access to menu items, XDS applies policies to the underlying table records. This is critical for maintaining data sovereignty and compliance in shared-service environments where users share the same role but differ in their operational scope.

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Role-based security

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Task recordings

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Security privileges

Question 9

You are setting up a vendor that operates in multiple currencies. How should you define the currency for this vendor to ensure correct exchange rate usage?

Accepted Answer

On the Vendor record, under the General tab.. The vendor's currency is defined on the Vendor master record. This setting dictates the default currency for all purchase documents created for that vendor. Ensuring the correct currency is set is vital for accurate accounts payable reporting, as the system will use this currency to calculate revaluations and exchange rate gains or losses, maintaining financial accuracy in a global business environment.

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In the Posting profile assigned to the vendor.

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In the Terms of payment configuration.

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In the Account structure configuration.

Question 10

A controller wants to ensure that whenever an acquisition is posted for a 'Tax' book, an identical acquisition is automatically posted for the 'Corporate' book. Which feature should be used to achieve this automation?

Accepted Answer

Derived books. Derived books allow for the synchronization of transactions across multiple asset books, reducing the manual effort required to maintain different sets of records for tax and corporate accounting. This feature ensures that the acquisition cost remains consistent across all required reporting layers without requiring duplicate data entry.

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Posting profiles

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Journal names

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Asset groups