MB-310 Practice Test 7 — 10 Questions

Question 1

A finance user needs to review the budget versus actual expenditures for a specific department for the current year. Which Dynamics 365 Finance feature should they use?

Accepted Answer

Budget vs. actuals inquiry. The Budget vs. actuals inquiry is the standard feature for comparing budgeted amounts to actual expenditures. It allows filtering by dimensions such as department and by period, providing a clear view of remaining budget and spending. Other options are configuration or transaction entry pages that do not offer this comparative analysis.

Answer

Budget planning

Answer

Budget control configuration

Answer

Budget register entries

Question 2

A company wants to charge a $15 wire transfer fee each time a vendor is paid by wire. The fee should be automatically added to the payment journal line when the wire payment method is used. What should you configure?

Accepted Answer

A vendor payment fee in the Payment fee setup, linked to the wire payment method and the vendor's bank account.. Payment fees in Dynamics 365 Finance are configured in the Payment fee setup, where you define the fee amount or percentage and associate it with a payment method, such as wire transfer. When a payment journal line uses that method, the fee is automatically calculated and added, ensuring consistent charging without manual intervention.

Answer

A bank transaction type of 'Fee' on the vendor's bank account.

Answer

A miscellaneous charge on the vendor record under the Invoice tab.

Answer

A ledger accrual account for wire fees with a periodic journal entry.

Question 3

A new accounts payable clerk at your company processes a vendor invoice that includes a line for office supplies. The clerk needs to assign the correct main account and include a cost center financial dimension before posting. Which configuration element determines that the main account 601200 'Office Supplies Expense' must be accompanied by a cost center dimension, and prevents posting if it is missing?

Accepted Answer

An account structure that includes the Main Account and Cost Center dimensions and is assigned to the legal entity's ledger.. Account structures are the mechanism that controls which main account and dimension combinations are valid, and whether a dimension is required. When the structure includes Main Account and Cost Center, and the Cost Center is marked as required, the ledger will reject any posting that omits it. Assigning the structure to the legal entity's ledger activates this validation for all transactions, including vendor invoices.

Answer

A ledger accrual scheme that references the Office Supplies main account and a cost center.

Answer

A posting profile configured on the vendor group with a summary account for Cost Center.

Answer

A financial dimension set that includes Cost Center and is linked to the vendor master record.

Question 4

A wholesale distributor wants to automatically place a customer on credit hold when an invoice becomes 60 days past due. The credit manager needs the hold to prevent new sales orders from being confirmed but still allow payments to be posted. Which configuration should the credit manager set up?

Accepted Answer

Configure a credit management blocking rule with a 60-day past-due condition and a blocking type of All.. Credit management blocking rules are the automated mechanism that evaluates conditions such as days past due and assigns a blocking status. Setting a rule for 60 days past due with a blocking type of All prevents new sales orders from being confirmed while permitting payments, which is exactly the behavior the credit manager requires.

Answer

Set the customer's credit limit to zero.

Answer

Enable the Credit limit check parameter on the Accounts receivable parameters form.

Answer

Create a collection letter sequence that triggers at 60 days past due.

Question 5

A Contoso financial analyst is preparing the annual budget and needs to enter original budget amounts for several departments. The organization wants the amounts to be available for budget control as soon as they are entered. Which budget register entry type should the analyst use?

Accepted Answer

Original budget. The original budget entry type is the correct choice for entering the initial approved budget for a fiscal year. When posted, original budget register entries increase available budget and are immediately considered by budget control rules. Transfer, revision, and encumbrance entry types serve different purposes and would not properly establish the initial budget amounts.

Answer

Revision

Answer

Encumbrance

Answer

Transfer

Question 6

A company is setting up a new fixed asset and wants to record the acquisition cost, but the asset will not be placed in service until a later date. The accountant needs to record the acquisition now and begin depreciating when the asset is placed in service. Which field on the fixed asset value model should be configured to control when depreciation starts?

Accepted Answer

Depreciation starting date. The depreciation starting date on the value model controls when depreciation begins. By setting it to the future in-service date, the acquisition can be recorded now while depreciation starts later. Other fields such as acquisition date, depreciation period, and service life affect reporting, calendar alignment, and duration, but not the start of depreciation.

Answer

Acquisition date

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Service life

Answer

Depreciation period

Question 7

A company is setting up a fixed asset that was acquired in a foreign currency. The company's accounting currency is USD, and the asset was purchased for 10,000 EUR. The exchange rate at acquisition was 1.2 USD/EUR. The company wants to ensure that the asset's historical cost in USD is correctly recorded and that any subsequent exchange rate fluctuations do not affect the asset's depreciation. Which setup should be used?

Accepted Answer

Record the acquisition in the fixed asset journal with the USD equivalent using the exchange rate at acquisition, and do not revalue the fixed asset for exchange rate changes.. Fixed assets in Dynamics 365 Finance are recorded in the accounting currency using the exchange rate at the acquisition date. The historical cost is fixed, and subsequent exchange rate movements do not affect the asset's value or depreciation. This treatment is consistent with accounting standards for property, plant, and equipment.

Answer

Record the acquisition in the fixed asset journal with the EUR amount and let the system convert using the daily exchange rate.

Answer

Set up the fixed asset in EUR and use a reporting currency for USD.

Answer

Use a revaluation group to periodically adjust the asset's value for exchange rate changes.

Question 8

A user in the Accounts payable department is trying to post an invoice journal for a vendor, but the system returns the error 'Posting has been cancelled because the accounting distribution is not fully allocated.' The invoice total is $12,000, but the distribution lines only sum to $10,000. What is the most likely cause of this error?

Accepted Answer

The accounting distribution lines for the invoice do not sum to the invoice total amount.. The error occurs because the accounting distribution lines total $10,000 while the invoice amount is $12,000. Dynamics 365 Finance requires that the sum of all accounting distributions equals the transaction amount before posting. The user must review and adjust the distribution lines to match the invoice total, ensuring the distribution is fully allocated.

Answer

The vendor's default posting profile is configured to require a purchase order.

Answer

The invoice journal line does not have a financial dimension value for the main account.

Answer

The ledger account for the expense is blocked for manual entry.

Question 9

A company is setting up a new fixed asset value model for office furniture. The company wants to use the straight-line depreciation method over a useful life of 10 years. The asset will be acquired on January 1 for USD 12,000. The company uses a calendar year fiscal period. What will be the annual depreciation expense for this asset?

Accepted Answer

USD 1,200. The straight-line depreciation method allocates the depreciable basis evenly over the useful life of the asset. With an acquisition cost of USD 12,000, no salvage value, and a useful life of 10 years, the annual depreciation is USD 12,000 / 10 = USD 1,200. The system will post this amount each year, assuming a full year of depreciation in the first year, depending on the depreciation convention.

Answer

USD 2,400

Answer

USD 1,000

Answer

USD 100

Question 10

A company uses Dynamics 365 Finance. You need to set up a customer payment proposal that includes only invoices with a due date on or before a specified date, and you want to automatically write off any cash discount that is not taken. Which configuration should you use?

Accepted Answer

Create a payment proposal with the Due date criteria and set the Post date and the Write off cash discount option on the payment proposal.. Payment proposals allow filtering by due date and include a Write off cash discount option. When enabled, any cash discount not taken is written off during payment posting. This is the correct configuration to include invoices due on or before a date and automatically write off unclaimed discounts.

Answer

Create a payment proposal with the Due date criteria and configure the Accounts payable parameters to write off cash discounts for all payments.

Answer

Create a payment proposal with the Due date criteria and set the Cash discount date criteria to include only invoices past the discount date.

Answer

Create a payment proposal with the Due date criteria and enable the Take cash discount option on the payment proposal.