MB-920 Describe Dynamics 365 Finance Practice Question
A company needs to track fixed assets in multiple locations and calculate depreciation differently based on asset type. Some assets use straight-line depreciation, while others use declining balance. What is the best practice to manage this in Dynamics 365 Finance?
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
✓
Define multiple depreciation profiles and assign them to the appropriate fixed asset groups.
Depreciation profiles define the method (e.g., straight-line, declining balance) and can be assigned to different fixed asset groups to accommodate different depreciation methods. Option A is wrong because value models are used for different valuation purposes, not to define depreciation methods. Option B is wrong because asset groups categorize assets but do not directly define depreciation methods. Option D is wrong because fixed asset journals are for posting acquisitions, disposals, and depreciation, but they do not automate the calculation based on method.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Set up value models with different depreciation conventions for each asset.
Why it's wrong here
Value models are for different valuation scenarios, not primary depreciation.
- ✗
Create separate asset groups for each depreciation method and assign the method to the group.
Why it's wrong here
Asset groups do not directly define depreciation methods.
- ✓
Define multiple depreciation profiles and assign them to the appropriate fixed asset groups.
Why this is correct
Depreciation profiles specify the method and are assigned to asset groups.
- ✗
Use fixed asset journals to manually calculate and post depreciation for each asset type.
Why it's wrong here
Manual calculation is inefficient and error-prone.
Go deeper
Related to this question
About these practice questions
One of 930 original MB-920 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. 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.