Describe Dynamics 365 Finance →hardMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Finance Practice Question

Exhibit

Refer to the exhibit.

```json
{
  "CurrencyCode": "USD",
  "ExchangeRateType": "Average",
  "FromDate": "2025-01-01",
  "ToDate": "2025-12-31",
  "ExchangeRate": 1.2000,
  "FromCurrency": "EUR",
  "ToCurrency": "USD"
}
```

Refer to the exhibit. A Dynamics 365 Finance administrator imports the above exchange rate. For what purpose would an 'Average' exchange rate type be used?

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

✓

To revalue balance sheet accounts at period end

Correct: Average rates are used for revaluation of balance sheet accounts. Option A is wrong because budget conversions use budget rates. Option B is wrong because transaction entry uses spot rates. Option D is wrong because sales invoicing uses spot rates.

Answer analysis

Option-by-option breakdown

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

✗
To convert budget amounts
Why it's wrong here
Budget conversions use budget rates, not average rates.
✗
To convert foreign currency transactions at the time of entry
Why it's wrong here
Foreign currency transactions at time of entry use spot rates, not average rates.
✓
To revalue balance sheet accounts at period end
Why this is correct
Average rates are used for revaluation.
✗
To calculate sales invoice amounts in company currency
Why it's wrong here
Sales invoices use the rate at transaction time.

Go deeper

MB-920 Describe Dynamics 365 Finance Practice Question

Exhibit

Why each option matters

Option-by-option breakdown

Related to this question