MB-920 Describe Dynamics 365 Finance Practice Question
Which TWO features in Dynamics 365 Finance help ensure compliance with regulatory reporting requirements?
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
✓
Electronic reporting (ER) tool
Options B and D are correct. Electronic reporting (ER) is a tool that enables configuring formats for regulatory and tax documents, ensuring compliance with reporting requirements. Tax reporting features in Dynamics 365 Finance handle specific tax compliance calculations and submissions. Option A is incorrect because budget control is about managing spending limits, not regulatory reporting. Option C is incorrect because fixed asset management tracks asset lifecycle but does not generate regulatory reports. Option E is incorrect because vendor collaboration is for communication with vendors, not regulatory compliance.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Budget control
Why it's wrong here
Controls spending, not regulatory reporting.
- ✓
Electronic reporting (ER) tool
Why this is correct
Used for generating regulatory reports in required formats.
- ✗
Fixed asset management
Why it's wrong here
Tracks assets, not regulatory compliance.
- ✓
Tax reporting
Why this is correct
Handles tax compliance and reporting.
- ✗
Vendor collaboration
Why it's wrong here
For vendor communication, not compliance.
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Variation 1. Which TWO of the following are features of Dynamics 365 Finance that support compliance with regulatory requirements? (Choose two.)
easy- ✓ A.Financial reporting
- ✓ B.Audit trail and change log
- C.Vendor collaboration
- D.Expense management
- E.Cash flow forecasting
Why A: Correct answers are A and B. Financial reporting in Dynamics 365 Finance helps generate reports that comply with regulatory standards like GAAP or IFRS. Audit trail and change log track all changes to financial data, ensuring transparency and supporting audit requirements. Options C, D, and E are not primarily compliance features: Vendor collaboration focuses on procurement processes, Expense management handles employee expenses, and Cash flow forecasting is for planning.
Variation 2. Which TWO features in Dynamics 365 Finance support compliance with regulatory reporting requirements for financial statements?
medium- A.Budget control
- B.Intercompany accounting
- ✓ C.Electronic reporting
- D.Fixed assets management
- ✓ E.Financial reporting
Why C: Options C and E are correct because Electronic reporting allows configuring tax and financial reports per regulatory formats, and Financial reporting enables designing reports compliant with GAAP/IFRS. Option A is incorrect because Budget control is for monitoring budgets, not reporting. Option B is incorrect because Intercompany accounting is for internal transactions. Option D is incorrect because Fixed assets management is for asset tracking, not reporting.
Variation 3. Which TWO features in Dynamics 365 Finance help organizations comply with regulatory requirements for financial reporting? (Choose two.)
medium- A.Vendor invoice automation.
- B.Payment schedules.
- C.Budget control.
- ✓ D.Audit trails and change logs.
- ✓ E.Financial reporting (Management Reporter).
Why D: Options D and E are correct. Audit trails and change logs track changes to financial data, providing transparency required for regulatory compliance. Financial reporting (Management Reporter) enables organizations to create custom reports that meet specific regulatory formats. Option A is incorrect because vendor invoice automation is an operational feature, not directly related to regulatory reporting. Option B is incorrect because payment schedules manage cash flow, not compliance. Option C is incorrect because budget control focuses on spending limits, not reporting requirements.
Variation 4. Which TWO features in Dynamics 365 Finance help organizations comply with international accounting standards such as IFRS? (Select TWO.)
medium- ✓ A.Multiple posting layers
- B.Vendor payment proposal
- C.Budget control
- ✓ D.Dual currency support
- E.Fixed asset management
Why A: Multiple posting layers allow organizations to maintain parallel accounting standards for compliance with IFRS and other international accounting standards. Option D is correct because dual currency support enables financial reporting in multiple currencies, which is essential for IFRS compliance. Option B (Vendor payment proposal) is incorrect as it relates to accounts payable, not compliance. Option C (Budget control) is incorrect as it is an internal budgeting tool. Option E (Fixed asset management) is incorrect as it pertains to asset lifecycle management, not specific compliance features.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.