Describe the core capabilities of the finance and operations apps →hardMultiple SelectObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
An organization uses Dynamics 365 Finance to manage fixed assets. Which THREE capabilities are part of the fixed assets module? (Choose three.)
⚠ Common exam trap
A common mix-up: candidates confuse lease accounting (a separate module) and impairment testing (an external process) with core fixed assets capabilities, because they are related asset lifecycle activities but not part of the fixed assets module itself.
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
✓
Depreciation calculation
The fixed assets module in Dynamics 365 Finance includes automated depreciation calculation using multiple methods (e.g., straight-line, declining balance, sum-of-years-digits). The system applies user-defined depreciation profiles and schedules to systematically allocate the asset's cost over its useful life, generating periodic journal entries without manual intervention.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Depreciation calculation
Why this is correct
Depreciation is a fundamental fixed asset capability.
- ✗
Lease accounting
Why it's wrong here
Lease accounting is a separate module.
- ✓
Asset transfer
Why this is correct
Transfer of assets between locations or departments is a core feature.
- ✓
Asset retirement obligations
Why this is correct
Asset retirement obligations are managed in fixed assets.
- ✗
Impairment testing
Why it's wrong here
Impairment testing is an advanced feature, not a core capability.
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