Quick Answer
The answer is intercompany journals, intercompany relationships, and intercompany settlement. These three components form the core of intercompany accounting setup components in Dynamics 365 Finance because they establish the legal entity connections, enable the posting of transactions between those entities, and ensure outstanding balances are ultimately cleared. On the Microsoft Dynamics 365 Fundamentals ERP MB-920 exam, this question tests your understanding of the mandatory building blocks versus optional features like budget control or general vendor groups, which are not specific to intercompany accounting. A common trap is confusing intercompany journals with standard journals, but remember that intercompany journals automatically balance across entities. For a quick memory tip, think of the three R’s: Relationships, Records (journals), and Reconciliation (settlement).
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 THREE components are essential for setting up intercompany accounting in Dynamics 365 Finance? (Choose three.)
Budget control rules.
Why wrong: Budget control is not required for intercompany accounting.
Intercompany relationships.
Defines which legal entities are part of intercompany transactions.
Vendor groups.
Why wrong: Vendor groups are not specific to intercompany.
Intercompany settlement.
Settlement ensures intercompany balances are cleared.
Intercompany journals.
Intercompany journals record transactions between entities.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Intercompany relationships.
Options A, C, and E are correct. Intercompany relationships define the legal entities involved, intercompany journals handle transactions, and intercompany settlement ensures balances are settled. Option B is wrong because budget control is optional. Option D is wrong because vendor groups are not specific to intercompany.
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.
Budget control rules.
Why it's wrong here
Budget control is not required for intercompany accounting.
Intercompany relationships.
Why this is correct
Defines which legal entities are part of intercompany transactions.
Related concept
Read the scenario before looking for a memorised answer.
Vendor groups.
Why it's wrong here
Vendor groups are not specific to intercompany.
Intercompany settlement.
Why this is correct
Settlement ensures intercompany balances are cleared.
Related concept
Read the scenario before looking for a memorised answer.
Intercompany journals.
Why this is correct
Intercompany journals record transactions between entities.
Related concept
Read the scenario before looking for a memorised answer.
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.
Describe Dynamics 365 Finance — study guide chapter
Learn the concepts, then practise the questions
Describe Dynamics 365 Finance practice questions
Targeted practice on this topic area only
All MB-920 questions
966 questions across all exam domains
Microsoft Dynamics 365 Fundamentals ERP MB-920 study guide
Full concept coverage aligned to exam objectives
MB-920 practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
Practise MB-920 questions linked to Describe Dynamics 365 Supply Chain Management.
Practise MB-920 questions linked to Describe Dynamics 365 Finance.
Practise MB-920 questions linked to Describe the core capabilities of the finance and operations apps.
Practise MB-920 questions linked to Describe shared features and Copilot capabilities.
Practise MB-920 questions linked to Describe Dynamics 365 Human Resources.
Practise MB-920 questions linked to Describe Dynamics 365 Commerce.
Practise MB-920 questions linked to Describe Dynamics 365 Project Operations.
Practise MB-920 questions linked to Describe shared Dynamics 365 ERP features.
Practise MB-920 questions linked to MB-920 fundamentals.
Practise MB-920 questions linked to MB-920 scenario.
Practise MB-920 questions linked to MB-920 troubleshooting.
Practice this exam
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
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: Intercompany relationships. — Options A, C, and E are correct. Intercompany relationships define the legal entities involved, intercompany journals handle transactions, and intercompany settlement ensures balances are settled. Option B is wrong because budget control is optional. Option D is wrong because vendor groups are not specific to intercompany.
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.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Keep practising
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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.