MB-920 Describe Dynamics 365 Finance Practice Question
You are a finance manager at Contoso Ltd. The company is implementing Dynamics 365 Finance and needs to set up the chart of accounts. Which TWO statements about the chart of accounts are correct?
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
✓
The chart of accounts is the foundation for financial reporting.
The chart of accounts provides the structure for categorizing financial transactions, which is essential for financial reporting. Option E is correct because Dynamics 365 Finance supports shared main accounts, allowing the same main account to be used across multiple legal entities within the organization. Option A is incorrect because posting profiles are mandatory for posting transactions; they define the accounting entries for source documents. Option C is incorrect because there is no fixed maximum of 100 main accounts; the system can support many more. Option D is incorrect because main accounts are not automatically created when a legal entity is created; they must be manually defined or imported as part of the chart of accounts setup.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Posting profiles are optional for posting transactions.
Why it's wrong here
Incorrect: Posting profiles are required to map transactions to accounts.
- ✓
The chart of accounts is the foundation for financial reporting.
Why this is correct
Correct: The chart of accounts defines the structure for financial reporting.
- ✗
A chart of accounts can contain a maximum of 100 main accounts.
Why it's wrong here
Incorrect: There is no such hard limit; organizations can have many main accounts.
- ✗
Main accounts are automatically created when a legal entity is created.
Why it's wrong here
Incorrect: Main accounts must be manually defined or imported.
- ✓
Main accounts can be shared across multiple legal entities.
Why this is correct
Correct: Shared main accounts allow consistent account structures across entities.
Go deeper
Related to this question
About these practice questions
This MB-920 question is part of Courseiva's 930-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
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.