Describe the core capabilities of the finance and operations apps →easyMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
A retail company uses Dynamics 365 Finance and Operations for financial reporting. They need to ensure that intercompany transactions are eliminated in consolidated financial statements. Which module should they use?
⚠ Common exam trap
Many candidates confuse the Consolidations module with standard financial reporting tools or assume that intercompany eliminations are handled automatically by the general ledger, when in fact they require a dedicated module with explicit elimination rules.
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
✓
Consolidations
The Consolidations module 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 reports reflect only external financial activity.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Budgeting
Why it's wrong here
Budgeting is for planning, not elimination.
- ✗
Accounts payable
Why it's wrong here
Accounts payable handles vendor transactions, not eliminations.
- ✗
Fixed assets
Why it's wrong here
Fixed assets manage asset lifecycle, not financial consolidation.
- ✓
Consolidations
Why this is correct
Consolidations eliminates intercompany transactions and combines financial statements.
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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.