MB-920 Describe Dynamics 365 Finance Practice Question
A company uses Dynamics 365 Finance and has multiple legal entities. They need to consolidate financial data from all entities into a single reporting entity for quarterly reports. What feature should be used to perform this consolidation?
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
✓
Consolidations
The Consolidations module in Dynamics 365 Finance is designed to consolidate financial data from multiple legal entities. Option A is wrong because Intercompany accounting handles transactions between entities, not consolidation. Option B is wrong because Financial reporting uses data from the ledger but does not perform the consolidation process itself. Option D is wrong because the General ledger does not consolidate automatically.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Intercompany accounting
Why it's wrong here
Intercompany accounting handles transactions between entities, not consolidation.
- ✗
Financial reporting
Why it's wrong here
Financial reporting uses data from the ledger but does not perform the consolidation process itself.
- ✓
Consolidations
Why this is correct
The Consolidations module is designed to consolidate financial data from multiple legal entities.
- ✗
General ledger
Why it's wrong here
General ledger does not consolidate automatically.
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Same concept, more angles
1 more way this is tested on MB-920
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Variation 1. A company uses Dynamics 365 Finance with multiple legal entities. They need to view consolidated financial data across all entities without manual intervention. What should they configure?
easy- A.Currency revaluation
- ✓ B.Consolidation
- C.Financial dimension sets
- D.Elimination rules
Why B: Consolidation in Dynamics 365 Finance automatically aggregates financial data from multiple legal entities. Option A is wrong because currency revaluation adjusts exchange rates, not consolidate data. Option C is wrong because financial dimension sets are used for reporting and analysis hierarchies, not for consolidating data across entities. Option D is wrong because elimination rules remove intercompany transactions during consolidation, but they do not perform the consolidation itself.
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.