MB-920 Describe Dynamics 365 Finance Practice Question
Which TWO of the following are prerequisites for setting up consolidation in Dynamics 365 Finance?
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
✓
Multiple legal entities must be set up.
Options C and D are correct. Consolidation in Dynamics 365 Finance requires multiple legal entities to be set up and the chart of accounts must be consistent across entities. Option A is incorrect because entities can use different fiscal calendars; adjustments can be made during consolidation. Option B is incorrect because intercompany transactions are not a prerequisite; consolidation can be performed without them. Option E is incorrect because workflow is optional and not required for consolidation journals.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
All entities must use the same fiscal calendar.
Why it's wrong here
Different fiscal calendars can be consolidated.
- ✗
Intercompany transactions must be configured.
Why it's wrong here
Intercompany transactions are not required for consolidation.
- ✓
Multiple legal entities must be set up.
Why this is correct
Consolidation requires multiple legal entities.
- ✓
The chart of accounts must be consistent across entities.
Why this is correct
Consistent chart of accounts is necessary for consolidation.
- ✗
Workflow must be enabled for consolidation journals.
Why it's wrong here
Workflow is optional.
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Same concept, more angles
1 more way this is tested on MB-920
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. Which TWO of the following are required to set up a consolidation in Dynamics 365 Finance? (Select two.)
hard- ✓ A.A consolidation company
- B.Reporting tree
- C.Elimination rules
- D.Budget plan templates
- ✓ E.Currency conversion rates
Why A: A consolidation company serves as the legal entity for the consolidated data. Currency conversion rates are required to translate amounts from source companies to the consolidation company's currency. Reporting trees are optional for structuring drill-down, elimination rules are optional for automating intercompany eliminations, and budget plan templates are unrelated to consolidation setup.
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.