Question 216 of 966

MB-920 Practice Question: Describe the core capabilities of the finance and operations apps

This MB-920 practice question tests your understanding of describe the core capabilities of the finance and operations apps. 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.

Exhibit

Refer to the exhibit.

```json
{
  "LegalEntity": "USMF",
  "MainAccount": "110130",
  "FiscalYear": 2024,
  "BudgetModel": "ORIGINAL",
  "BudgetCycle": "FY2024",
  "BudgetEntry": [
    {
      "LineNumber": 1,
      "Date": "2024-01-01",
      "Amount": 500000,
      "Currency": "USD",
      "DimensionValues": {
        "Department": "Sales",
        "CostCenter": "CC001"
      }
    }
  ]
}
```

Refer to the exhibit. A budget transfer has been proposed in Dynamics 365 Finance for the Sales department, cost center CC001. The budget manager receives an error that the transfer exceeds the available budget. What is the most likely cause?

Clue words in this question

Noticing these words before you look at the options changes how you read each choice.

  • Clue: "most likely"

    Why it matters: Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.

Question 1hardmultiple choice
Full question →

Exhibit

Refer to the exhibit.

```json
{
  "LegalEntity": "USMF",
  "MainAccount": "110130",
  "FiscalYear": 2024,
  "BudgetModel": "ORIGINAL",
  "BudgetCycle": "FY2024",
  "BudgetEntry": [
    {
      "LineNumber": 1,
      "Date": "2024-01-01",
      "Amount": 500000,
      "Currency": "USD",
      "DimensionValues": {
        "Department": "Sales",
        "CostCenter": "CC001"
      }
    }
  ]
}
```

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

The budget amount exceeds the available budget for the combination of dimensions

Option D is correct because the error message indicates that the proposed budget transfer would cause the budget balance for the specific combination of financial dimensions (Sales department, cost center CC001) to go negative. In Dynamics 365 Finance, budget control checks are performed against the available budget balance for each dimension combination; if the transfer amount exceeds the remaining budget, the system blocks the transaction.

Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • The main account is not valid

    Why it's wrong here

    Main account 110130 is likely valid.

  • The fiscal year 2024 is not open for budget

    Why it's wrong here

    Fiscal year 2024 is likely open.

  • The budget model ORIGINAL is not defined

    Why it's wrong here

    The budget model ORIGINAL is likely defined.

  • The budget amount exceeds the available budget for the combination of dimensions

    Why this is correct

    The transfer amount exceeds the remaining budget for that department and cost center.

    Clue confirmation

    The clue word "most likely" in the question point toward this answer.

    Related concept

    Read the scenario before looking for a memorised answer.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates may confuse a budget transfer error with a general configuration or master data issue, when in fact the error is specifically about insufficient remaining budget for the given dimension combination.

Detailed technical explanation

How to think about this question

Budget control in Dynamics 365 Finance uses budget check rules that evaluate proposed transactions against the remaining budget balance for each dimension combination (e.g., department + cost center). The available budget is calculated as the original budget amount minus actual expenditures and pre-encumbrances/encumbrances. When a transfer is proposed, the system checks whether the resulting balance would fall below zero; if so, the transfer is rejected with the 'exceeds available budget' error.

KKey Concepts to Remember

  • Read the scenario before looking for a memorised answer.
  • Find the constraint that changes the correct option.
  • Eliminate answers that are true in general but not in this case.

TExam Day Tips

  • Watch for words such as best, first, most likely and least administrative effort.
  • Review why wrong options are wrong, not only why the correct option is correct.

Key takeaway

Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Real-world example

How this comes up in practice

A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.

What to study next

Got this wrong? Here's your next step.

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

Related practice questions

Related MB-920 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

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FAQ

Questions learners often ask

What does this MB-920 question test?

Describe the core capabilities of the finance and operations apps — This question tests Describe the core capabilities of the finance and operations apps — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: The budget amount exceeds the available budget for the combination of dimensions — Option D is correct because the error message indicates that the proposed budget transfer would cause the budget balance for the specific combination of financial dimensions (Sales department, cost center CC001) to go negative. In Dynamics 365 Finance, budget control checks are performed against the available budget balance for each dimension combination; if the transfer amount exceeds the remaining budget, the system blocks the transaction.

What should I do if I get this MB-920 question wrong?

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

Are there clue words in this question I should notice?

Yes — watch for: "most likely". Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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Last reviewed: Jun 24, 2026

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