MB-920 Describe Dynamics 365 Finance Practice Question
A small business uses Dynamics 365 Finance for the first time. They have one legal entity, one currency (USD), and simple financial needs. They want to record daily sales, pay vendors, reconcile bank accounts, and generate financial statements. They have no intercompany transactions or complex manufacturing. You are setting up the system. What should you do to minimize configuration overhead?
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
✓
Use the standard default configurations and only customize essential modules.
For a small business with one legal entity, one currency, and simple financial needs, using the standard default configurations in Dynamics 365 Finance minimizes configuration overhead while still allowing recording of daily sales, vendor payments, bank reconciliations, and financial statements. Option A is wrong because creating a detailed chart of accounts with many segments adds unnecessary complexity for a simple setup. Option C is wrong because setting up multiple legal entities would increase overhead and is not needed for a single legal entity. Option D is wrong because intercompany accounting is not required and would add unnecessary configuration; it can be implemented later if expansion occurs.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create a detailed chart of accounts with many segments for future expansion.
Why it's wrong here
While possible, it adds complexity; a simple chart is sufficient.
- ✓
Use the standard default configurations and only customize essential modules.
Why this is correct
Minimizes overhead and meets all stated needs.
- ✗
Set up multiple legal entities to separate financial data.
Why it's wrong here
Only one legal entity is needed.
- ✗
Configure intercompany accounting in case they expand later.
Why it's wrong here
Unnecessary complexity for current needs.
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