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MB-920 Practice Question: Describe the core capabilities of the finance and operations apps

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?

⚠ Common exam trap

Many exam-takers 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.

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

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.

Answer analysis

Option-by-option breakdown

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.

  • General journal

    Why it's wrong here

    General journal can be used but is not the recommended type for fixed assets.

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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.