MB-920 Describe Dynamics 365 Finance Practice Question
A retail company uses Dynamics 365 Finance to manage financial operations. The CFO wants to forecast cash flow using historical data. Which feature should be used to predict future cash positions?
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
✓
Cash flow forecasting
Cash flow forecasting is the correct feature because it uses historical data to predict future cash positions. Option B, Cash flow forecasting, is designed for this purpose. Budgeting (D) is for planning, not forecasting. Bank reconciliation (C) matches transactions. Payment proposals (A) generate payments. Therefore, B is correct.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Payment proposal
Why it's wrong here
Payment proposal generates payment suggestions, not cash flow predictions.
- ✓
Cash flow forecasting
Why this is correct
Cash flow forecasting leverages historical data to predict future cash inflows and outflows.
- ✗
Bank reconciliation
Why it's wrong here
Bank reconciliation ensures records match bank statements, not for forecasting.
- ✗
Budgeting
Why it's wrong here
Budgeting is for planning expenses and revenues, not specifically for cash flow prediction.
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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.