Quick Answer
The answer is that a vendor payment was posted to the wrong vendor account. This is correct because a negative balance in the Accounts Payable account indicates that credits (payments) have exceeded debits (invoices) for that vendor, meaning money was sent out without a corresponding purchase or invoice to offset it. When a payment is applied to the wrong vendor, the subledger shows a credit balance for that vendor, but the general ledger still reflects the payment as a liability reduction, causing the trial balance not to balance due to misalignment between the subledger detail and the GL account. On the MB-920 exam, this scenario tests your understanding of how subledger postings impact the general ledger and trial balance, often appearing as a troubleshooting question where you must identify the root cause of an imbalance. A common trap is assuming the issue is a data entry error in the invoice amount rather than a misapplied payment. Memory tip: “Wrong vendor, wrong balance—payments without invoices create negative accounts payable.”
This MB-920 practice question tests your understanding of describe dynamics 365 finance. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 using Dynamics 365 Finance notices that the trial balance does not balance because the 'Accounts Payable' account has a negative balance. What could be the reason?
A prepayment invoice was posted without a purchase order
Why wrong: Why C is wrong
A vendor payment was posted to the wrong vendor account
Why D is correct
Intercompany transactions were posted incorrectly
Why wrong: Why B is wrong
A bank reconciliation was not performed
Why wrong: Why A is wrong
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
A vendor payment was posted to the wrong vendor account
A negative balance in the Accounts Payable account typically indicates that credits (payments) exceed debits (invoices) for a vendor. Posting a vendor payment to the wrong vendor account creates a credit balance in the intended vendor's subledger without a corresponding invoice, causing the trial balance to be out of balance because the general ledger account reflects the payment but the subledger detail is misaligned.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
A prepayment invoice was posted without a purchase order
Why it's wrong here
Why C is wrong
A vendor payment was posted to the wrong vendor account
Why this is correct
Why D is correct
Related concept
Read the scenario before looking for a memorised answer.
Intercompany transactions were posted incorrectly
Why it's wrong here
Why B is wrong
A bank reconciliation was not performed
Why it's wrong here
Why A is wrong
Common exam traps
The trap here is that candidates often assume a negative AP balance is caused by a data entry error like a prepayment or intercompany issue, but the specific symptom of a trial balance not balancing points to a subledger-to-general ledger mismatch, which is exactly what posting a payment to the wrong vendor creates.
Detailed technical explanation
In Dynamics 365 Finance, the Accounts Payable account is a control account that aggregates subledger transactions from vendor invoices and payments. When a payment is posted to the wrong vendor, the system updates the general ledger with the correct debit to cash and credit to AP, but the subledger shows the credit against the wrong vendor, leaving the correct vendor's balance unaffected and the wrong vendor with a negative balance. This discrepancy is detected when running the trial balance because the subledger detail does not match the general ledger control account.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Describe Dynamics 365 Finance — study guide chapter
Learn the concepts, then practise the questions
Describe Dynamics 365 Finance practice questions
Targeted practice on this topic area only
All MB-920 questions
966 questions across all exam domains
Microsoft Dynamics 365 Fundamentals ERP MB-920 study guide
Full concept coverage aligned to exam objectives
MB-920 practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
Practise MB-920 questions linked to Describe Dynamics 365 Supply Chain Management.
Practise MB-920 questions linked to Describe Dynamics 365 Finance.
Practise MB-920 questions linked to Describe the core capabilities of the finance and operations apps.
Practise MB-920 questions linked to Describe shared features and Copilot capabilities.
Practise MB-920 questions linked to Describe Dynamics 365 Human Resources.
Practise MB-920 questions linked to Describe Dynamics 365 Commerce.
Practise MB-920 questions linked to Describe Dynamics 365 Project Operations.
Practise MB-920 questions linked to Describe shared Dynamics 365 ERP features.
Practise MB-920 questions linked to MB-920 fundamentals.
Practise MB-920 questions linked to MB-920 scenario.
Practise MB-920 questions linked to MB-920 troubleshooting.
Practice this exam
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
FAQ
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
The correct answer is: A vendor payment was posted to the wrong vendor account — A negative balance in the Accounts Payable account typically indicates that credits (payments) exceed debits (invoices) for a vendor. Posting a vendor payment to the wrong vendor account creates a credit balance in the intended vendor's subledger without a corresponding invoice, causing the trial balance to be out of balance because the general ledger account reflects the payment but the subledger detail is misaligned.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A company's finance team reports that in the general ledger, the balance for the 'Office Supplies' account shows a credit balance of $500, but they expected a debit balance. What is the most likely cause of this discrepancy?
hardWhy B: In Dynamics 365 Finance, the general ledger account for 'Office Supplies' is an expense account, which normally carries a debit balance. A credit balance indicates that a voucher was posted with the wrong debit/credit sign, such as entering a negative amount or selecting the wrong account type during transaction entry. This is the most common cause of a balance sign reversal in an expense account.
Last reviewed: Jun 11, 2026
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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.