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Describe Dynamics 365 FinancehardMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Finance Practice Question

A multinational organization uses Dynamics 365 Finance. They need to consolidate financial data from subsidiaries that use different currencies and accounting standards. The consolidation must be performed automatically on a monthly basis. What should they configure?

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 and currency translation

Correct Answer: Consolidation and currency translation. This feature automatically consolidates financial data from subsidiaries using different currencies and accounting standards into a single reporting currency, meeting the requirement for automatic monthly consolidation. Option A (Fixed assets management) manages asset lifecycle but does not handle consolidation. Option B (Intercompany accounting) records transactions between entities but does not automate multi-currency consolidation. Option C (Budget planning) is for creating budgets, not consolidation. Option D (Consolidation and currency translation) is the correct feature for this scenario.

Answer analysis

Option-by-option breakdown

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

  • Fixed assets management

    Why it's wrong here

    Fixed assets management is unrelated to financial consolidation.

  • Intercompany accounting

    Why it's wrong here

    Intercompany accounting manages transactions between entities, not consolidation.

  • Budget planning

    Why it's wrong here

    Budget planning is for creating budgets, not consolidation.

  • Consolidation and currency translation

    Why this is correct

    This feature automates consolidation with currency translation and elimination.

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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.