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Describe Dynamics 365 FinanceeasyMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Finance Practice Question

A company implements Dynamics 365 Finance and needs to configure a chart of accounts that supports multiple legal entities. What is the best practice for managing shared accounts?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Use the shared chart of accounts feature and assign it to each legal entity.

The shared chart of accounts feature in Dynamics 365 Finance allows a single chart of accounts to be used across multiple legal entities, ensuring consistency and simplifying maintenance. Option A is incorrect because deleting unused accounts is irrelevant to sharing. Option C is incorrect because financial dimensions are used for tracking, not for sharing the chart of accounts. Option D is incorrect because separate charts per entity increase complexity and are not a best practice.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Delete accounts that are not used across all entities.

    Why it's wrong here

    Deleting unused accounts does not help with sharing the chart of accounts across legal entities; it reduces the available accounts.

  • Use the shared chart of accounts feature and assign it to each legal entity.

    Why this is correct

    The shared chart of accounts feature allows one chart to be assigned to multiple legal entities, providing consistency and ease of maintenance.

  • Use financial dimensions to differentiate accounts by legal entity.

    Why it's wrong here

    Financial dimensions are used for analysis and reporting, not for sharing the chart of accounts structure.

  • Create a separate chart of accounts for each legal entity to ensure independence.

    Why it's wrong here

    Creating separate charts for each legal entity increases administrative overhead and is against the best practice of using a shared chart.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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