Describe the core capabilities of the finance and operations apps →easyMultiple SelectObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
A company uses Dynamics 365 Finance. They need to configure intercompany accounting. Which TWO actions are required?
⚠ Common exam trap
A common mix-up: candidates confuse consolidation setup (Option A) with intercompany accounting, but consolidation is a separate process that occurs after intercompany transactions are recorded and eliminated.
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
✓
Set up intercompany relationships
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.
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.
- ✓
Define intercompany elimination rules
Why this is correct
Elimination rules remove intercompany transactions from consolidated reports.
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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.