Describe the core capabilities of the finance and operations apps →easyMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
A company wants to use Dynamics 365 Finance to automatically recognize revenue over time for subscription-based services. Which feature should they configure?
⚠ Common exam trap
Candidates often confuse 'revenue recognition' with general accounting modules like Accounts Payable or Budgeting, assuming any financial feature can handle revenue deferral, when only the dedicated Revenue recognition feature provides the required scheduling and compliance logic.
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
✓
Revenue recognition
Revenue recognition in Dynamics 365 Finance enables automatic scheduling and deferral of revenue based on contract terms, such as subscription services. It uses deferred revenue schedules and fair value allocation to recognize revenue over time, aligning with ASC 606 and IFRS 15 standards.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Revenue recognition
Why this is correct
Revenue recognition allows recognizing revenue over time for subscriptions.
- ✗
Fixed assets management
Why it's wrong here
Fixed assets management is for tangible assets, not revenue.
- ✗
Accounts payable
Why it's wrong here
Accounts payable manages vendor payments, not revenue recognition.
- ✗
Budgeting
Why it's wrong here
Budgeting is for planning, not revenue recognition.
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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.