Describe the core capabilities of the finance and operations apps →easyMultiple ChoiceObjective-mapped
MB-920 Practice Question: Describe the core capabilities of the finance and operations apps
You are a functional consultant for a retail company deploying Dynamics 365 Finance and Operations. The client wants to manage their financial consolidation across multiple legal entities with different chart of accounts. They need to eliminate intercompany transactions automatically during consolidation. Which feature should you recommend?
⚠ Common exam trap
It's easy for candidates to confuse the Intercompany accounting feature (which records transactions) with the Consolidation [Elimination] feature (which removes those transactions during consolidation), leading them to select option C instead of B.
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
✓
Consolidation [Elimination]
The Consolidation [Elimination] feature in Dynamics 365 Finance is specifically designed to handle financial consolidation across multiple legal entities with different charts of accounts. It automatically generates elimination entries to remove intercompany transactions, ensuring that consolidated financial statements reflect only external activities. This directly meets the client's requirement for automated elimination during consolidation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Financial reporting
Why it's wrong here
Financial reporting generates reports but does not perform eliminations.
- ✓
Consolidation [Elimination]
Why this is correct
This feature automatically eliminates intercompany balances and transactions during consolidation.
- ✗
Intercompany accounting
Why it's wrong here
Intercompany accounting manages transactions but does not eliminate them.
- ✗
Budget planning
Why it's wrong here
Budget planning is for creating budgets, not for consolidation elimination.
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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.