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Describe Dynamics 365 FinancehardMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Finance Practice Question

A multinational company uses Dynamics 365 Finance. They need to report financial data in both local GAAP and IFRS. Which feature 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

Financial dimensions

Correct answer: D - Financial dimensions. Financial dimensions in Dynamics 365 Finance allow you to track financial data by different attributes, such as cost center, department, or accounting standard. By setting up a financial dimension for 'Accounting Standard' and assigning values like 'Local GAAP' and 'IFRS', you can report in both standards simultaneously. Option A is incorrect because Currency translation deals with converting amounts between currencies, not accounting standards. Option B is incorrect because Ledger period refers to the fiscal period (month, quarter, year) for transactions, not for tracking different standards. Option C is incorrect because Consolidation is used to combine financial results of multiple legal entities, not to report under multiple accounting standards within one entity.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Currency translation

    Why it's wrong here

    Currency translation converts amounts between currencies, not accounting standards.

  • Ledger period

    Why it's wrong here

    Ledger period defines accounting periods, not standards.

  • Consolidation

    Why it's wrong here

    Consolidation combines financial statements from multiple entities.

  • Financial dimensions

    Why this is correct

    Financial dimensions can separate reporting for different accounting standards.

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