MB-310 Manage Fixed Assets Practice Test 2 — 15 Questions

Question 1

An accountant creates a new fixed asset record but forgets to assign the asset to a fixed asset group. The record is saved in Microsoft Dynamics 365 Finance. What is the operational impact of missing the fixed asset group assignment?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

You will be unable to acquire, depreciate, or dispose of the asset until a valid fixed asset group is assigned.. The fixed asset group serves as the foundational template that automatically supplies default parameters such as depreciation profiles, service lives, and posting profiles. Without this group assignment, critical transactional attributes must be manually configured, exposing the process to human error and compliance issues.

Answer

The system will automatically assign the asset to a system-default general group and generate standard posting profiles.

Answer

The asset record will be immediately deleted by a nightly batch job designed to clean up incomplete master data.

Answer

Depreciation will calculate correctly, but general ledger postings will fail during the periodic journal batch transfer.

Question 2

Your company decides to split a large commercial building into multiple distinct units to better track departmental usage and manage depreciation separately. You need to execute a fixed asset split in Microsoft Dynamics 365 Finance. Which THREE actions must you perform? Each correct answer presents part of the solution.

Accepted Answer

Create new fixed asset master records representing the newly split components before executing the asset split transaction.. Splitting a fixed asset requires careful coordination to transfer partial book values, accumulated depreciation, and acquisition costs from the original parent asset to newly created child assets. You must configure the split parameters, initiate the split journal, and verify the resulting subledger balances.

Answer

Manually delete the original fixed asset record immediately after the split journal is posted to keep asset registers clean.

Answer

Post the split transaction through a standard general ledger journal to bypass subledger validation rules.

Question 3

Your organization requires a specific asset group to use a depreciation convention where the asset starts depreciating in the month of acquisition, regardless of the exact day. Which setup should you configure in the Fixed asset posting profile?

Accepted Answer

Set the Depreciation convention to 'Full Month'.. The depreciation convention setting determines how the system calculates the start and end dates for depreciation. By selecting the 'Full Month' convention, the system ensures that depreciation is calculated for the entire month of acquisition, satisfying the requirement for consistency regardless of the day. Proper configuration of these conventions is critical for ensuring compliance with accounting standards and maintaining accurate asset valuation throughout the asset lifecycle.

Answer

Set the Depreciation profile to 'Straight line' and enable 'Full Year' convention.

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Configure the Depreciation convention as 'None'.

Answer

Enable 'Half-Year' convention on the Fixed asset book.

Question 4

Refer to the exhibit. A user attempts to post a depreciation entry for an asset, but the system generates an error stating the transaction cannot be posted. Based on the configuration in the exhibit, what is the most likely cause?

Accepted Answer

The asset net book value would fall below zero.. The system prevents posting because the 'AllowNegativeNetBookValue' is set to 'No'. If the proposed depreciation entry would result in a net book value below zero, the system halts the transaction to maintain data integrity. This configuration is a common control mechanism used to ensure that asset values do not become artificially negative due to aggressive depreciation schedules or errors in depreciation manual adjustments.

Answer

The BookId 'B01' is set to 'Inactive' status.

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The system setting 'PostDepreciation' is set to 'Yes'.

Answer

The Depreciation toggle is set to 'Yes'.

Question 5

Which action must be performed in Fixed Assets before you can dispose of an asset using a partial sale?

Accepted Answer

Select the 'Dispose' type and specify the percentage or amount.. To process a partial sale, you must first determine the portion of the asset being sold, often expressed as a percentage or a specific quantity. The system requires an adjustment or a specific disposal transaction that splits the asset record or reduces its value proportionally. Understanding this process is essential for accurate financial reporting during divestment activities, ensuring that remaining asset values are correctly tracked after the partial disposal occurs.

Answer

Change the asset status to 'Suspended'.

Answer

Create a new fixed asset record for the partial amount.

Answer

Delete the original acquisition transaction.

Question 6

Which TWO of the following statements are correct regarding the Fixed asset value model and depreciation book?

Accepted Answer

Value models allow for postings to the General Ledger.. Value models and depreciation books serve different purposes in Dynamics 365. Value models are integrated with the General Ledger, allowing for direct financial updates, whereas depreciation books are primarily for tax or internal reporting purposes and do not always require ledger integration. Understanding this distinction is vital for consultants to correctly design asset tracking solutions that comply with both financial accounting standards and local tax reporting requirements.

Answer

Depreciation books are always linked to the General Ledger.

Answer

Value models do not allow for asset disposals.

Answer

Depreciation books are mandatory for all assets.

Question 7

A fixed asset accountant at a manufacturing company must transfer a specialized CNC machine from the Production department to the Research & Development department. The machine has a net book value of $48,000 and is assigned to the MACHINERY fixed asset group, which uses straight-line depreciation over 10 years with a half-year convention. The accountant needs to change the fixed asset's financial dimension from Department=Production to Department=R&D without affecting the asset's acquisition cost, accumulated depreciation, or depreciation profile. Which approach should the accountant take?

Accepted Answer

Create a fixed asset journal of type Reclassification, select the asset, and update the financial dimension value on the asset's book record.. Changing a fixed asset's financial dimension without affecting its financial balances requires a Reclassification journal. This journal type posts the dimension change to the general ledger while leaving the asset's cost, accumulated depreciation, and depreciation profile intact. Other journal types, such as Transfer, do not update financial dimensions on the book, and manual edits are not supported for posted assets.

Answer

Dispose of the asset and reacquire it under the R&D department with the same net book value.

Answer

Manually edit the financial dimension value directly on the fixed asset record without using a journal.

Answer

Create a fixed asset journal of type Transfer, select the asset, and update the financial dimension value on the asset's book record.

Question 8

A legal entity in Dynamics 365 Finance has a fixed asset that was placed in service in the current fiscal year. The company wants to divide the asset's cost basis between a main account for the asset and a separate main account for a government grant offset, posting both amounts through the same value model. Which fixed asset transaction type should be used to record the asset cost while allowing the offsetting entry to be posted to a different ledger account?

Accepted Answer

Acquisition. The Acquisition transaction type is the only fixed asset transaction that records the initial capitalized cost of an asset and allows the offsetting ledger entry to be directed to a different main account through the posting profile. Depreciation adjustment, revaluation, and write-up adjustment all modify an existing asset value and cannot create the original cost basis or the grant offset.

Answer

Revaluation

Answer

Depreciation adjustment

Answer

Write-up adjustment

Question 9

A fixed asset is assigned to a value model that uses the reducing balance depreciation method with a factor of 2. The asset has an acquisition cost of 100,000 and a salvage value of 10,000. The company wants to verify the first-year depreciation amount before posting. Which amount will the system calculate for the first year?

Accepted Answer

18,000. Reducing balance depreciation in Dynamics 365 Finance subtracts the salvage value from the acquisition cost to determine the depreciable basis, then applies the factor to the net book value. For an asset costing 100,000 with a 10,000 salvage value and a factor of 2, the first-year depreciation is 90,000 multiplied by 200%, which equals 18,000 after applying the cap.

Answer

20,000

Answer

90,000

Answer

10,000

Question 10

A fixed asset has an acquisition cost of $50,000, a salvage value of $5,000, and a useful life of 10 years. The company uses the straight-line depreciation method with a half-year convention. After three full years of depreciation, the company decides to change the useful life to 6 years total. What is the correct remaining useful life and the depreciation basis to use for the remaining periods?

Accepted Answer

Remaining life of 3 years; depreciation basis of the net book value less salvage value. When the useful life of a fixed asset is changed, the remaining net book value less salvage value is depreciated over the remaining useful life. The remaining life is the new total life minus the life already elapsed. Here, the new total life is 6 years, and 3 years have passed, so 3 years remain. The net book value must be computed based on prior depreciation, and that amount less salvage value becomes the new basis.

Answer

Remaining life of 3 years; depreciation basis of $50,000

Answer

Remaining life of 6 years; depreciation basis of $45,000

Answer

Remaining life of 3 years; depreciation basis of $45,000

Question 11

A company is setting up a new fixed asset group for office furniture. The accounting team wants to ensure that when depreciation is posted, the correct ledger accounts are used and that the asset is included in the correct financial dimensions. Which two configurations must be completed in Dynamics 365 Finance to achieve this? (Choose two.)

Accepted Answer

Configure the Fixed asset group with a default value model and depreciation profile.. To ensure correct ledger accounts and financial dimensions for depreciation, the Fixed asset posting profile must be assigned to the value model, and the Fixed asset group must be configured with the appropriate value model and depreciation profile. These two setups establish the accounting entries and default depreciation settings for the office furniture assets.

Answer

Set up a ledger allocation rule for depreciation.

Answer

Define a financial dimension for the Fixed asset group.

Answer

Create a budget model for fixed asset depreciation.

Question 12

A fixed asset's value model is set up so that depreciation is calculated and posted separately by two users: one runs the depreciation proposal and adjusts it, and a different user posts the resulting journal. The controller wants to enforce that the person who posts the depreciation journal cannot be the same person who created the depreciation proposal. Which configuration should the functional consultant recommend?

Accepted Answer

Define a segregation of duties rule in the Security configuration that prevents a user who created a journal from posting that same journal.. Enforcing that the depreciation proposal creator cannot post the same journal is a segregation-of-duties control. Dynamics 365 Finance provides this through Security configuration, where conflicting duties like journal creation and journal posting can be identified and blocked. Journal names, posting profiles, and parameter restrictions do not compare the preparer and poster, so they cannot satisfy this requirement.

Answer

Configure a user group restriction on the Fixed asset parameters form and assign only the posting user to the group.

Answer

Set up a journal name with an approval workflow and enable the 'Limit user to journal' option so only the posting user can access it.

Answer

Use the Fixed asset posting profile to mark the depreciation journal as 'posting restricted' and assign it to a single user.

Question 13

A company uses Dynamics 365 Finance Fixed Assets. They have an asset with an acquisition cost of $50,000 and accumulated depreciation of $20,000. The company decides to sell the asset for $35,000 cash. The asset's value model is configured with a posting profile that includes a disposal sale account. Which journal should the accountant use to record the sale and the resulting gain or loss?

Accepted Answer

General journal. The general journal includes a dedicated fixed asset disposal transaction type that records the sale proceeds, removes the asset's cost and accumulated depreciation, and posts any gain or loss to the configured accounts. This ensures the disposal is properly reflected in both the fixed asset subledger and the general ledger.

Answer

Inventory journal

Answer

Fixed asset journal

Answer

Project journal

Question 14

A fixed asset manager needs to record the acquisition of a new machine that was purchased on credit from a vendor. The machine costs $15,000. The acquisition should be recorded in Dynamics 365 Finance, and the offset account should be Accounts Payable. Which journal type should be used to record this acquisition?

Accepted Answer

Fixed asset journal. The fixed asset journal is the correct choice because it allows you to record the acquisition of a fixed asset and simultaneously create the asset record in the fixed asset subledger. You can set the offset account to Accounts Payable, ensuring the liability is recorded correctly. This method is efficient for direct acquisitions without a purchase order.

Answer

Vendor invoice journal

Answer

Purchase order

Answer

General journal

Question 15

A consulting firm uses Dynamics 365 Finance to track fixed assets. The company wants to ensure that depreciation for all assets in the 'Office Equipment' group is calculated using a method that allocates a higher depreciation expense in the earlier years of an asset's life. The controller also wants the ability to change the depreciation method for individual assets without affecting the entire group. What should the functional consultant configure?

Accepted Answer

Define a new depreciation profile using the 'Reducing balance' method and assign it to the value model used by the 'Office Equipment' group.. Depreciation profiles define the method, and they are assigned to value models or books. To apply a reducing balance method to a group of assets, you create a depreciation profile and assign it to the value model used by that group. This ensures all assets in the group use that method by default. To allow per-asset changes, you can assign a different depreciation profile to an individual asset's value model, overriding the group default without affecting others.

Answer

Create a new value model with the 'Reducing balance' depreciation method and assign it to the 'Office Equipment' group.

Answer

Use the 'Fixed asset groups' form to set the depreciation method to 'Reducing balance' for the group, which will apply to all assets in the group.

Answer

Set the 'Depreciation method' field on each asset record to 'Reducing balance' and leave the group configuration unchanged.