This MB-920 practice question tests your understanding of describe the core capabilities of the finance and operations apps. 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 finance manager needs to create a journal entry to record the monthly depreciation of fixed assets. The company uses Dynamics 365 Finance. Which journal type should be used?
Payment journal
Why wrong: Payment journal is for vendor payments.
Inventory journal
Why wrong: Inventory journal is for inventory adjustments.
Fixed assets journal
This journal is designed for depreciation and other asset transactions.
General journal
Why wrong: General journal can be used but is not the recommended type for fixed assets.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Fixed assets journal
The Fixed assets journal is specifically designed to record fixed asset transactions such as acquisitions, disposals, and depreciation. In Dynamics 365 Finance, this journal type automatically posts to the correct fixed asset ledger accounts and updates the asset's net book value, making it the appropriate choice for monthly depreciation entries.
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.
Payment journal
Why it's wrong here
Payment journal is for vendor payments.
Inventory journal
Why it's wrong here
Inventory journal is for inventory adjustments.
Fixed assets journal
Why this is correct
This journal is designed for depreciation and other asset transactions.
Related concept
Read the scenario before looking for a memorised answer.
General journal
Why it's wrong here
General journal can be used but is not the recommended type for fixed assets.
Common exam traps
The trap here is that candidates often confuse the General journal with the Fixed assets journal, assuming any journal can handle fixed asset transactions, but the General journal lacks the automated subledger updates and depreciation proposal functionality specific to fixed assets.
Detailed technical explanation
The Fixed assets journal in Dynamics 365 Finance integrates with the fixed asset subledger, automatically calculating and posting depreciation amounts based on the asset's depreciation profile, service life, and convention. When a user enters a depreciation proposal, the system generates journal lines that debit the depreciation expense account and credit the accumulated depreciation account, while simultaneously updating the asset's net book value in the fixed asset register. This ensures that the general ledger and subledger remain in sync without manual intervention.
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
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FAQ
Describe the core capabilities of the finance and operations apps — This question tests Describe the core capabilities of the finance and operations apps — Read the scenario before looking for a memorised answer..
The correct answer is: Fixed assets journal — The Fixed assets journal is specifically designed to record fixed asset transactions such as acquisitions, disposals, and depreciation. In Dynamics 365 Finance, this journal type automatically posts to the correct fixed asset ledger accounts and updates the asset's net book value, making it the appropriate choice for monthly depreciation entries.
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.
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Last reviewed: Jun 24, 2026
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