MB-920 Describe Dynamics 365 Finance Practice Question
A company wants to use Dynamics 365 Finance to manage its cash flow. Which feature allows them to forecast future cash positions based on historical data and expected payments?
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
✓
Cash flow forecasting
The cash flow forecasting feature in Dynamics 365 Finance uses historical and expected data to predict future cash positions. Option A (General ledger) is wrong because it records transactions, not forecasts. Option C (Bank reconciliation) is wrong because it matches bank statements, not predicts cash flow. Option D (Payment schedules) is wrong because it manages installment payments, not forecasts.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
General ledger
Why it's wrong here
The general ledger records transactions, not forecasts.
- ✓
Cash flow forecasting
Why this is correct
This feature provides cash position forecasts.
- ✗
Bank reconciliation
Why it's wrong here
Bank reconciliation matches bank statements, not forecasts.
- ✗
Payment schedules
Why it's wrong here
Payment schedules define installment plans, not forecasts.
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