MB-920 Describe Dynamics 365 Finance Practice Question
A company is configuring Dynamics 365 Finance for a new subsidiary. The subsidiary uses a different currency than the parent company. What must be set up to enable translation of the subsidiary's financial statements to the parent's reporting currency?
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
✓
Exchange rates
Exchange rates are required for currency translation. Option A is wrong because currency revaluation is for adjusting balances, not for translation. Option C is wrong because a consolidation company is used to combine results, but translation requires exchange rates. Option D is wrong because intercompany accounting is for transactions between entities, not for translation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Currency revaluation
Why it's wrong here
Currency revaluation adjusts balances, not translates.
- ✓
Exchange rates
Why this is correct
Exchange rates are needed to translate amounts.
- ✗
Consolidation company
Why it's wrong here
Consolidation combines results but requires exchange rates.
- ✗
Intercompany accounting
Why it's wrong here
Intercompany accounting is for transactions, not translation.
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