Quick Answer
The correct answer is Acquisition because this transaction type records the initial purchase of a fixed asset, such as a delivery truck, in Dynamics 365 Finance. Technically, the Acquisition transaction posts the asset’s cost to the general ledger, creating the asset record and establishing its depreciable base. On the Microsoft Dynamics 365 Fundamentals ERP MB-920 exam, this concept tests your understanding of the fixed asset lifecycle, where Acquisition is the first step before Depreciation, Disposal, or Impairment. A common trap is confusing Acquisition with Depreciation, which allocates cost over time, or Disposal, which removes the asset. Remember the memory tip: “Acquire to acquire, depreciate to wear, dispose to clear, impair to tear.” This helps distinguish the fixed asset acquisition transaction type as the entry point for any new asset purchase.
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.
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?
Acquisition
Acquisition records the purchase of a fixed asset.
Impairment
Why wrong: Impairment records a permanent decline in value.
Disposal
Why wrong: Disposal records the sale or retirement of an asset.
Depreciation
Why wrong: Depreciation records the value decrease over time.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Acquisition
Option B is correct because acquisition records the purchase of a fixed asset. Option A is wrong because depreciation records the value decrease over time. Option C is wrong because disposal records the sale or retirement. Option D is wrong because impairment records a permanent decline in value.
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.
Acquisition
Why this is correct
Acquisition records the purchase of a fixed asset.
Related concept
Read the scenario before looking for a memorised answer.
Impairment
Why it's wrong here
Impairment records a permanent decline in value.
Disposal
Why it's wrong here
Disposal records the sale or retirement of an asset.
Depreciation
Why it's wrong here
Depreciation records the value decrease over time.
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: Acquisition — Option B is correct because acquisition records the purchase of a fixed asset. Option A is wrong because depreciation records the value decrease over time. Option C is wrong because disposal records the sale or retirement. Option D is wrong because impairment records a permanent decline in value.
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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