MB-920 Describe Dynamics 365 Finance Practice Question
A retail company uses Dynamics 365 Finance to manage its fixed assets. They purchase a new delivery truck. Which fixed asset transaction type should they use to record the purchase?
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
✓
Acquisition
Acquisition records the purchase of a fixed asset. Option B is wrong because impairment records a permanent decline in value. Option C is wrong because disposal records the sale or retirement. Option D is wrong because depreciation records the value decrease over time.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Acquisition
Why this is correct
Acquisition records the purchase of a fixed asset. This is the correct transaction type for recording the purchase of a new truck.
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Impairment
Why it's wrong here
Impairment records a permanent decline in the value of an asset, not its initial purchase.
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Disposal
Why it's wrong here
Disposal records the sale or retirement of an asset, not its acquisition.
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Depreciation
Why it's wrong here
Depreciation records the systematic allocation of the asset's cost over its useful life, not its purchase.
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