MB-920 Describe Dynamics 365 Finance Practice Question
A company is configuring fixed assets in Dynamics 365 Finance. They need to ensure that asset depreciation is calculated differently for tax reporting and financial reporting. Which TWO actions must be taken?
⚠ Common exam trap
Test-takers frequently confuse value models with depreciation books or think that a single value model can support multiple depreciation profiles, when in fact each value model requires its own dedicated depreciation profile to achieve different calculations.
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
✓
Create multiple value models for the same asset.
In Dynamics 365 Finance, to calculate depreciation differently for tax and financial reporting, you must create multiple value models for the same asset. Each value model can then be assigned a separate depreciation profile, allowing distinct depreciation calculations for each reporting purpose.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use a single depreciation book for both tax and financial.
Why it's wrong here
Cannot have different methods in one book.
- ✓
Create multiple value models for the same asset.
Why this is correct
Allows different depreciation methods for tax and financial.
- ✓
Set up separate depreciation profiles for each value model.
Why this is correct
Each value model uses its own depreciation profile.
- ✗
Enable the 'Derived value models' feature.
Why it's wrong here
Used for transferring asset values, not for different methods.
- ✗
Use a single value model with multiple depreciation profiles.
Why it's wrong here
A value model can only have one depreciation profile.
Go deeper
Related to this question
About these practice questions
Courseiva writes every MB-920 question from scratch — 930 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This MB-920 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-920 exam.