Question 1mediummultiple choice
Full question →- A
$1,000
Why wrong: Discount not applied.
- B
$900
Why wrong: Incorrect discount amount.
- C
$950
Invoice minus discount.
- D
$1,050
Why wrong: This adds the discount.
Question 149 of 966
Quick Answer
The answer is $950 because the vendor payment is made within the 10-day discount window, so the $50 cash discount applies to the $1,000 invoice. In Dynamics 365 Finance, this cash discount vendor payment calculation is automated through the payment terms setup, where the system compares the payment date against the discount period defined on the vendor record. When the payment date falls on day 8, which is within the allowed 10 days, the system automatically reduces the payment amount to $950. On the MB-920 exam, this scenario tests your understanding of how cash discounts are applied in accounts payable, often appearing as a straightforward calculation where the trap is forgetting to verify the payment date against the discount period. A common memory tip is to think of the discount as a reward for early payment: if you pay before the deadline, you subtract the discount; if you pay after, you pay the full invoice. Remember the mnemonic “Early Pay, Discount Stay” to recall that timely payments trigger the automatic deduction.
MB-920 Describe Dynamics 365 Finance Practice Question
This MB-920 practice question tests your understanding of describe dynamics 365 finance. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company uses Dynamics 365 Finance and needs to create a vendor payment that includes a discount of $50 if paid within 10 days. The invoice is for $1,000. The payment is made on day 8. What should the payment amount be?
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
✓
$950
Option C is correct because the vendor payment is made within the 10-day discount period, so the $50 discount applies to the $1,000 invoice. The payment amount is $1,000 - $50 = $950. In Dynamics 365 Finance, this is handled through the cash discount setup on the vendor payment terms, which automatically calculates the discounted amount when the payment date falls within the discount window.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$1,000
Why it's wrong here
Discount not applied.
- ✗
$900
Why it's wrong here
Incorrect discount amount.
- ✓
$950
Why this is correct
Invoice minus discount.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
$1,050
Why it's wrong here
This adds the discount.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may mistakenly calculate a percentage discount (e.g., 10% of $1,000 = $100) instead of recognizing the fixed $50 discount amount specified in the scenario.
Detailed technical explanation
How to think about this question
In Dynamics 365 Finance, cash discounts are configured in the Accounts payable > Payment setup > Cash discounts module, where you define a discount percentage or fixed amount and the number of days. When a payment is settled, the system uses the payment date to determine if the discount applies, and the discount is posted to a separate discount account (e.g., 520200 Vendor Discounts) rather than reducing the invoice line amount. This ensures accurate financial reporting and audit trails.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
- →
Describe Dynamics 365 Finance — study guide chapter
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Targeted practice on this topic area only
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FAQ
Questions learners often ask
What does this MB-920 question test?
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: $950 — Option C is correct because the vendor payment is made within the 10-day discount period, so the $50 discount applies to the $1,000 invoice. The payment amount is $1,000 - $50 = $950. In Dynamics 365 Finance, this is handled through the cash discount setup on the vendor payment terms, which automatically calculates the discounted amount when the payment date falls within the discount window.
What should I do if I get this MB-920 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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.
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