Describe the core capabilities of the finance and operations apps →hardMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
A multinational corporation needs to support multiple currencies, languages, and regulatory reports in Dynamics 365 Finance. Which configuration should they use?
⚠ Common exam trap
Candidates often confuse the shared parameter setup (Option B) with legal entity configuration, assuming global settings can handle multi-currency and multi-language needs, but shared parameters only apply system-wide defaults and cannot isolate per-entity regulatory or currency requirements.
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
✓
Legal entity configuration
A legal entity configuration is required in Dynamics 365 Finance to support multiple currencies, languages, and regulatory reports because each legal entity can be set up with its own currency, language, and reporting requirements. This allows the system to generate country-specific regulatory reports (e.g., VAT, tax filings) and handle multi-currency transactions independently per entity, which is essential for a multinational corporation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Organization hierarchy
Why it's wrong here
Hierarchies structure the organization but do not directly set currency or language.
- ✗
Shared parameter setup
Why it's wrong here
Shared parameters apply across legal entities, not per entity.
- ✗
Global address book
Why it's wrong here
Address book handles party addresses, not financials.
- ✓
Legal entity configuration
Why this is correct
Legal entities can be set up with separate currencies and languages.
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