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 uses Dynamics 365 Finance and Operations with multiple legal entities. The finance team needs to generate a consolidated financial statement that eliminates intercompany transactions automatically. Which feature should they use?
⚠ Common exam trap
It's easy for candidates to confuse Intercompany accounting (which handles the recording of intercompany transactions) with Consolidation (which performs the elimination and aggregation), leading them to select Option A incorrectly.
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
✓
Consolidation
Consolidation in Dynamics 365 Finance and Operations is specifically designed to combine financial data from multiple legal entities into a single set of consolidated financial statements. It includes built-in functionality to automatically eliminate intercompany transactions and balances, ensuring that the consolidated report reflects only external financial activity. This directly meets the requirement for generating a consolidated financial statement with automatic intercompany elimination.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Intercompany accounting
Why it's wrong here
Intercompany accounting enables posting transactions between entities but does not eliminate them.
- ✓
Consolidation
Why this is correct
Consolidation module can eliminate intercompany balances and transactions automatically.
- ✗
Budget planning
Why it's wrong here
Budget planning is used for creating budgets, not consolidation.
- ✗
Financial reporting
Why it's wrong here
Financial reporting tools display data but do not perform elimination.
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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.