Quick Answer
The answer is balance sheet accounts and profit and loss accounts. These two account types form the core structure of the chart of accounts in Dynamics 365 Finance because they directly correspond to the fundamental financial statements: the balance sheet tracks assets, liabilities, and equity, while the profit and loss account captures revenues and expenses over a period. On the Microsoft Dynamics 365 Fundamentals ERP MB-920 exam, this concept tests your understanding of how financial data is organized for reporting, and a common trap is confusing statistical accounts or budget accounts with standard account types—statistical accounts hold non-financial metrics, and budget accounts are separate planning tools, not part of the chart itself. To remember, think of the two main financial statements: the balance sheet and the income statement (profit and loss), and you will never mix them up.
This MB-920 practice question tests your understanding of describe dynamics 365 finance. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which TWO account types are commonly used in the chart of accounts in Dynamics 365 Finance? (Choose two.)
Statistical accounts.
Why wrong: Statistical accounts are for non-financial data.
Budget accounts.
Why wrong: Budget accounts are not part of the chart of accounts.
Profit and loss accounts.
Profit and loss accounts track revenues and expenses.
Balance sheet accounts.
Balance sheet accounts track assets, liabilities, and equity.
Reporting accounts.
Why wrong: Reporting accounts are not a standard account type.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Profit and loss accounts.
Options A and C are correct. Balance sheet accounts and profit and loss accounts are the main types. Option B is wrong because budget accounts are not part of the chart of accounts. Option D is wrong because statistical accounts are for non-financial data. Option E is wrong because reporting accounts are not a standard account type.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Statistical accounts.
Why it's wrong here
Statistical accounts are for non-financial data.
Budget accounts.
Why it's wrong here
Budget accounts are not part of the chart of accounts.
Profit and loss accounts.
Why this is correct
Profit and loss accounts track revenues and expenses.
Related concept
Read the scenario before looking for a memorised answer.
Balance sheet accounts.
Why this is correct
Balance sheet accounts track assets, liabilities, and equity.
Related concept
Read the scenario before looking for a memorised answer.
Reporting accounts.
Why it's wrong here
Reporting accounts are not a standard account type.
Common exam traps
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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FAQ
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
The correct answer is: Profit and loss accounts. — Options A and C are correct. Balance sheet accounts and profit and loss accounts are the main types. Option B is wrong because budget accounts are not part of the chart of accounts. Option D is wrong because statistical accounts are for non-financial data. Option E is wrong because reporting accounts are not a standard account type.
Identify which MB-920 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 21, 2026
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.
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