MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
This MB-920 practice question tests your understanding of describe the core capabilities of the finance and operations apps. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 Operations and has multiple legal entities. The parent company needs to monitor the cash position of all subsidiaries in real time. Currently, each subsidiary uses its own bank account and currency. You need to configure a solution that provides a consolidated view of cash balances across all entities in the parent company's currency (EUR). The solution must support drill-down to individual bank transactions. The company uses the Cash and bank management module. What should you do?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Configure a cash position that includes bank accounts from all legal entities with currency exchange rates.
Option D is correct because the Cash position feature in Dynamics 365 Finance and Operations allows you to configure a consolidated view of cash balances across multiple legal entities by including bank accounts from all subsidiaries and applying currency exchange rates to convert balances to the parent company's currency (EUR). This solution supports drill-down to individual bank transactions, meeting the real-time monitoring requirement.
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.
✗
Use Microsoft Power BI to connect to each legal entity's Cash and bank management data.
Why it's wrong here
Power BI can be used but cash position is native and easier to maintain.
✗
Set up intercompany accounting to automatically transfer cash balances to the parent company.
Why it's wrong here
This changes actual cash positions, not just reporting.
✗
Use the bank reconciliation workspace to view each subsidiary's bank transactions.
Why it's wrong here
Bank reconciliation is for matching, not consolidated view.
✓
Configure a cash position that includes bank accounts from all legal entities with currency exchange rates.
Why this is correct
Cash position provides consolidated view with drill-down.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse the Cash position feature with Power BI reporting or intercompany accounting, assuming external tools or balance transfers are needed for consolidation, when the native Cash position configuration directly supports multi-entity, multi-currency drill-down.
Detailed technical explanation
How to think about this question
The Cash position feature uses the Cash and bank management module's 'Cash position' form, where you can add bank accounts from different legal entities and define exchange rates from the General ledger module. It queries the BankAccountBalance table in real time, allowing drill-down to the BankTransaction table for individual transactions. In a real-world scenario, a multinational parent company can set up a cash position named 'Global Cash View' that includes EUR, USD, and JPY accounts, with exchange rates updated daily via the Currency exchange rates provider.
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 the core capabilities of the finance and operations apps — This question tests Describe the core capabilities of the finance and operations apps — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Configure a cash position that includes bank accounts from all legal entities with currency exchange rates. — Option D is correct because the Cash position feature in Dynamics 365 Finance and Operations allows you to configure a consolidated view of cash balances across multiple legal entities by including bank accounts from all subsidiaries and applying currency exchange rates to convert balances to the parent company's currency (EUR). This solution supports drill-down to individual bank transactions, meeting the real-time monitoring requirement.
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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Question Discussion
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