Describe the core capabilities of the finance and operations apps →hardMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
A company uses Dynamics 365 Finance and Operations with multiple legal entities. They need to eliminate intercompany transactions during consolidation. What should they configure?
⚠ Common exam trap
It's easy for candidates to confuse intercompany accounting setup (which handles transaction posting) with elimination rules (which handle removal of those transactions during consolidation), leading them to select D instead of C.
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
✓
Elimination rules in consolidation
Elimination rules in consolidation are specifically designed to remove intercompany transactions when consolidating financial data from multiple legal entities. In Dynamics 365 Finance, these rules automatically generate reversing entries to eliminate balances between entities, ensuring the consolidated financial statements reflect only external transactions. This is the correct configuration for eliminating intercompany activity during the consolidation process.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Consolidation groups
Why it's wrong here
Consolidation groups define the scope.
- ✗
Financial dimensions
Why it's wrong here
Financial dimensions are for analytical reporting.
- ✓
Elimination rules in consolidation
Why this is correct
Elimination rules automatically remove intercompany transactions.
- ✗
Intercompany accounting setup
Why it's wrong here
Intercompany accounting does not eliminate transactions.
Go deeper
Related to this question
About these practice questions
This MB-920 question is part of Courseiva's 930-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. 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.