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Describe Dynamics 365 FinanceeasyMultiple SelectObjective-mapped

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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