MB-310 Manage Fixed Assets Practice Question
A company has a fixed asset that was acquired in a previous year and has been fully depreciated. The asset is still in use but has no book value. The company wants to continue using the asset but does not want to incur additional depreciation. What should they do?
⚠ Common exam trap
The trap here is thinking that you must change settings to stop depreciation on a fully depreciated asset, when the system automatically stops at zero book value.
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
✓
Leave the asset as is; the system will not depreciate below zero.
When a fixed asset is fully depreciated, its net book value is zero, and Dynamics 365 Finance will not depreciate it further. The asset remains in the register and can continue to be used without any additional depreciation. No configuration changes are required. The other options involve unnecessary or incorrect actions that could disrupt reporting or asset tracking.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Change the depreciation profile to 'None' on the value model.
Why it's wrong here
Changing the depreciation profile to 'None' would stop depreciation, but it also removes the depreciation history and could affect reporting. However, the asset is already fully depreciated, so no further depreciation will be calculated regardless. The correct approach is to leave the asset as is and not run depreciation for it, or to adjust the useful life if needed. Changing the profile is unnecessary and could cause confusion.
- ✗
Manually adjust the net book value to zero and mark the asset as disposed.
Why it's wrong here
Marking the asset as disposed would remove it from the active fixed asset register, which is incorrect because the asset is still in use. Manually adjusting the net book value is unnecessary since it is already zero. Disposal is only appropriate when the asset is sold or scrapped. This option would misrepresent the asset's status.
- ✓
Leave the asset as is; the system will not depreciate below zero.
Why this is correct
Once an asset is fully depreciated, its net book value is zero, and the system will not calculate further depreciation because it does not depreciate below zero. The asset remains in the fixed asset register with a zero book value. No changes are needed unless the company wants to revalue or adjust the asset. This is the standard behavior in Dynamics 365 Finance.
- ✗
Set the 'Depreciation' field to 'No' on the value model.
Why it's wrong here
The 'Depreciation' field on the value model indicates whether the value model is used for depreciation. Setting it to 'No' would prevent any depreciation transactions, but it also means the asset would not be included in depreciation proposals. Since the asset is already fully depreciated, this is not necessary. The system will not depreciate below zero, so no action is required.
About these practice questions
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
This MB-310 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-310 exam.