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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.

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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.