MB-920 Describe Dynamics 365 Finance Practice Question
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.
Refer to the exhibit. A journal entry in Dynamics 365 Finance shows a debit to account 1100-001-01 and offset to account 2100-002-02. The financial dimensions include Department=Sales and CostCenter=CC001. What is the purpose of this entry?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Increasing cash and increasing a liability
Account 1100 is typically Cash (asset). Account 2100 is typically Accounts Payable (liability). Debiting Cash and crediting AP does not make sense for payment. A debit to Cash (increase) and credit to AP (increase) is unusual; more likely it's a receipt from a vendor refund. But typical: debit Cash, credit AP means receiving cash and reducing liability? Actually debit Cash increases, credit AP increases liability. That would be a loan or refund. Option D matches: increasing cash and increasing liability (e.g., receiving a deposit).
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.
✗
Recording a customer payment
Why it's wrong here
Customer payment typically debits Cash and credits Accounts Receivable, not AP.
✗
Recording a vendor payment
Why it's wrong here
Vendor payment debits AP and credits Cash, opposite direction.
✓
Increasing cash and increasing a liability
Why this is correct
Debit to Cash increases asset, credit to AP increases liability.
Related concept
Read the scenario before looking for a memorised answer.
✗
Reclassifying a bank transaction
Why it's wrong here
Reclassification would not involve offsetting AP.
Common exam traps
Common exam trap: answer the scenario, not the keyword
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
How to think about this question
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.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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 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 — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Increasing cash and increasing a liability — Account 1100 is typically Cash (asset). Account 2100 is typically Accounts Payable (liability). Debiting Cash and crediting AP does not make sense for payment. A debit to Cash (increase) and credit to AP (increase) is unusual; more likely it's a receipt from a vendor refund. But typical: debit Cash, credit AP means receiving cash and reducing liability? Actually debit Cash increases, credit AP increases liability. That would be a loan or refund. Option D matches: increasing cash and increasing liability (e.g., receiving a deposit).
What should I do if I get this MB-920 question wrong?
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.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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