MB-920 Describe Dynamics 365 Finance Practice Question
Which TWO of the following are capabilities of the General ledger in Dynamics 365 Finance?
⚠ Common exam trap
Test-takers frequently confuse the General ledger's role as a posting and reporting engine with the specialized modules that perform the actual business logic, such as Fixed assets for depreciation or Accounts payable for invoice matching.
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
✓
Chart of accounts management
The General ledger in Dynamics 365 Finance is the central repository for financial data, and its core capabilities include managing the Chart of accounts (D) and supporting Multi-currency accounting (E). The Chart of accounts defines the financial structure of an organization, allowing for the creation and maintenance of main accounts, dimensions, and account structures. Multi-currency accounting enables transactions to be recorded and reported in multiple currencies, with automatic exchange rate calculations and revaluation, which is fundamental to the General ledger's role.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Asset depreciation calculation
Why it's wrong here
Asset depreciation is part of Fixed assets module.
- ✗
Invoice matching
Why it's wrong here
Invoice matching is part of Accounts payable.
- ✗
Budget cycle management
Why it's wrong here
Budget cycle management is part of Budgeting module.
- ✓
Chart of accounts management
Why this is correct
Chart of accounts is a key component of General ledger.
- ✓
Multi-currency accounting
Why this is correct
General ledger supports transactions in multiple currencies.
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