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. They need to configure intercompany accounting. Which TWO actions are required?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Set up intercompany relationships
Option D is required because intercompany relationships must be defined in Dynamics 365 Finance to establish the legal entities that will transact with each other. This setup is the foundational step that enables the system to recognize and process transactions between related companies, such as sales orders or purchase orders, and ensures proper accounting entries are generated.
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.
✗
Set up consolidation accounts
Why it's wrong here
Consolidation accounts are for consolidation, not intercompany accounting.
✗
Set up budget models
Why it's wrong here
Budget models are for budgeting, not intercompany accounting.
✗
Configure financial reporting
Why it's wrong here
Financial reporting is for reporting, not intercompany accounting setup.
✓
Set up intercompany relationships
Why this is correct
Intercompany relationships define legal entities that transact with each other.
Related concept
Read the scenario before looking for a memorised answer.
✓
Define intercompany elimination rules
Why this is correct
Elimination rules remove intercompany transactions from consolidated reports.
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 often confuse consolidation setup (Option A) with intercompany accounting, but consolidation is a separate process that occurs after intercompany transactions are recorded and eliminated.
Detailed technical explanation
How to think about this question
Intercompany accounting in Dynamics 365 Finance relies on the intercompany setup to automatically generate balancing entries between the selling and buying legal entities. The elimination rules (Option E) are then used to remove intercompany transactions during consolidation, ensuring that the consolidated financial statements reflect only external activities. A common real-world scenario is a multinational corporation where subsidiaries sell goods to each other; without proper intercompany relationships and elimination rules, the consolidated profit would be overstated.
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: Set up intercompany relationships — Option D is required because intercompany relationships must be defined in Dynamics 365 Finance to establish the legal entities that will transact with each other. This setup is the foundational step that enables the system to recognize and process transactions between related companies, such as sales orders or purchase orders, and ensures proper accounting entries are generated.
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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