Describe Dynamics 365 Finance →hardMultiple ChoiceObjective-mapped

MB-920 Describe Dynamics 365 Finance Practice Question

Exhibit

{
  "GeneralJournalEntry": {
    "JournalName": "MonthlyAdjustments",
    "Lines": [
      {
        "Account": "1100-001-01",
        "Debit": 5000,
        "OffsetAccount": "2100-002-02"
      }
    ],
    "FinancialDimensions": [
      {"Department": "Sales", "CostCenter": "CC001"}
    ]
  }
}

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 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

✓

Increasing cash and increasing a liability

The entry debits Cash (account 1100, an asset) and credits Accounts Payable (account 2100, a liability). A debit increases Cash, and a credit increases Accounts Payable. This results in both an increase in cash and an increase in a liability, which matches option C. Such an entry could represent receiving a deposit or a loan, where the company receives cash and incurs a liability to repay.

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.
✗
Reclassifying a bank transaction
Why it's wrong here
Reclassification would not involve offsetting AP.

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MB-920 Describe Dynamics 365 Finance Practice Question

Exhibit

Why each option matters

Option-by-option breakdown

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