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Describe Dynamics 365 FinancemediumMultiple SelectObjective-mapped

MB-920 Chart of accounts Practice Question

A company is implementing Dynamics 365 Finance and needs to configure the chart of accounts. Which TWO statements are true about the chart of 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

The chart of accounts can be shared across multiple legal entities.

Options A and E are correct. The chart of accounts can be shared across multiple legal entities (A) and it defines the list of main accounts used in the general ledger (E). Option B is incorrect because account structures, not the chart of accounts itself, define valid dimension combinations. Option C is incorrect because main accounts with posted transactions cannot be deleted. Option D is incorrect because the chart of accounts does not have to be unique per legal entity; it can be shared.

Answer analysis

Option-by-option breakdown

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

  • The chart of accounts can be shared across multiple legal entities.

    Why this is correct

    In Dynamics 365 Finance, the chart of accounts is typically shared to ensure consistency.

  • The chart of accounts includes account structures that define valid dimension combinations.

    Why it's wrong here

    Account structures are separate from the chart of accounts; they define valid combinations of main accounts and dimensions.

  • Main accounts can be deleted even if they have posted transactions.

    Why it's wrong here

    Main accounts with transactions cannot be deleted; they must be marked as inactive.

  • The chart of accounts must be unique for each legal entity.

    Why it's wrong here

    The chart of accounts is usually shared; it does not have to be unique per legal entity.

  • The chart of accounts defines the list of main accounts that can be used in the general ledger.

    Why this is correct

    The chart of accounts contains all main accounts, which are the primary accounts for posting.

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