Quick Answer
The answer is the General ledger stores the chart of accounts and supports financial dimensions. These two features are core because the General ledger serves as the central repository for all financial data, where the chart of accounts defines the structure of financial reporting and financial dimensions allow for detailed tracking of costs and revenue across departments, projects, or locations. On the Microsoft Dynamics 365 Fundamentals ERP MB-920 exam, this question tests your ability to distinguish the General ledger’s role from other modules; a common trap is confusing it with transactional modules like Procurement or Accounts receivable. Remember that the General ledger is about recording and organizing financial data, not executing operational tasks like managing purchase orders or creating sales invoices. A helpful memory tip is to think of the General ledger as the “master map” of your finances—it holds the chart of accounts and dimensions, while everything else is a transaction that feeds into it.
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.
Which TWO of the following are features of the 'General ledger' in Dynamics 365 Finance?
Manage purchase orders.
Why wrong: Purchase orders are in Procurement.
Define financial dimensions.
Financial dimensions are defined in General ledger.
Manage fixed assets.
Why wrong: Fixed assets are in Fixed assets module.
Store chart of accounts.
Chart of accounts is in General ledger.
Create sales invoices.
Why wrong: Sales invoices are in Accounts receivable.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Define financial dimensions.
Options A and D are correct. The General ledger contains the chart of accounts and supports financial dimensions. Option B is wrong because managing purchase orders is done in Procurement and sourcing. Option C is wrong because creating sales invoices is done in Accounts receivable. Option E is wrong because managing fixed assets is done in Fixed assets module.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Manage purchase orders.
Why it's wrong here
Purchase orders are in Procurement.
Define financial dimensions.
Why this is correct
Financial dimensions are defined in General ledger.
Related concept
Read the scenario before looking for a memorised answer.
Manage fixed assets.
Why it's wrong here
Fixed assets are in Fixed assets module.
Store chart of accounts.
Why this is correct
Chart of accounts is in General ledger.
Related concept
Read the scenario before looking for a memorised answer.
Create sales invoices.
Why it's wrong here
Sales invoices are in Accounts receivable.
Common exam traps
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
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.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
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.
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FAQ
Describe Dynamics 365 Finance — This question tests Describe Dynamics 365 Finance — Read the scenario before looking for a memorised answer..
The correct answer is: Define financial dimensions. — Options A and D are correct. The General ledger contains the chart of accounts and supports financial dimensions. Option B is wrong because managing purchase orders is done in Procurement and sourcing. Option C is wrong because creating sales invoices is done in Accounts receivable. Option E is wrong because managing fixed assets is done in Fixed assets module.
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.
Read the scenario before looking for a memorised answer.
About these practice questions
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Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your organization is implementing Dynamics 365 Finance and needs to manage the financial operations of multiple legal entities. Which module is the primary tool for recording and managing financial transactions for each legal entity?
easyWhy C: The General ledger is the core module for recording all financial transactions. Option B is for accounts payable, Option C is for accounts receivable, Option D is for budgeting.
Last reviewed: Jun 21, 2026
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