MB-920 Describe Dynamics 365 Finance Practice Question
A company wants to use Dynamics 365 Finance to manage its cash flow by forecasting future bank balances. Which module should they use?
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 and bank management
Cash and bank management includes cash flow forecasting tools. Option B (Accounts receivable) manages customer payments, not forecasting. Option C (Accounts payable) manages vendor payments, not forecasting. Option D (General ledger) is for posting, not forecasting.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Cash and bank management
Why this is correct
The Cash and bank management module provides cash flow forecasting features to predict bank balances.
- ✗
Accounts receivable
Why it's wrong here
Accounts receivable handles customer invoices and collections, not forecasting.
- ✗
Accounts payable
Why it's wrong here
Accounts payable handles vendor invoices and payments, not cash flow forecasting.
- ✗
General ledger
Why it's wrong here
General ledger is for recording transactions, not for forecasting.
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Same concept, more angles
2 more ways this is tested on MB-920
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 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?
easy- A.General ledger
- ✓ B.Cash flow forecasting
- C.Bank reconciliation
- D.Payment schedules
Why B: 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.
Variation 2. An organization using Dynamics 365 Finance implements AI-driven cash flow forecasting. What data source does the feature primarily use?
medium- ✓ A.Historical transaction data
- B.External bank account balances
- C.Vendor payment history
- D.Budget and forecast data
Why A: The AI-driven cash flow forecasting feature in Dynamics 365 Finance primarily uses historical transaction data to predict future cash flows. Option B is incorrect because external bank account balances are not directly used; the feature relies on internal transaction history. Option C is incorrect because while vendor payment history is a component of historical transactions, the system primarily uses the broader set of historical transaction data, not just vendor payment history. Option D is incorrect because budget and forecast data are used for planning and analysis, not as the primary input for the AI-driven cash flow forecasting.
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.