MB-310 Manage Fixed Assets Practice Question
A company is implementing Dynamics 365 Finance and needs to configure depreciation for a new asset. The asset will use a straight-line depreciation method with a 5-year service life. Which two settings must be configured on the value model to achieve this? (Choose two.)
⚠ Common exam trap
The trap here is selecting the depreciation convention as a required setting, but it only affects the timing of the first and last periods, not the method or life.
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
✓
Service life
To configure straight-line depreciation over 5 years, you must set the depreciation profile to a straight-line method and the service life to 5 years on the value model. These two settings directly determine the depreciation method and the period over which the asset is depreciated. Other settings like the depreciation convention and fixed asset group are important but not mandatory to achieve the basic calculation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Depreciation convention
Why it's wrong here
While the depreciation convention affects the timing of the first and last depreciation periods, it is not strictly required to achieve straight-line depreciation over 5 years. The convention defaults to Full month if not specified, which may be acceptable. The question asks for the settings necessary to achieve the method and life, not the precise proration.
- ✓
Service life
Why this is correct
Service life specifies the number of years or periods over which the asset will be depreciated. For a 5-year life, you must set the service life to 5 years on the value model. This setting works with the depreciation profile to determine the periodic depreciation amount. It is a required field for depreciation to be calculated.
- ✗
Depreciation run date
Why it's wrong here
The depreciation run date is the date on which the depreciation proposal is executed, not a configuration setting on the value model. It is specified each time you run depreciation. It does not define the method or life of the asset. Therefore, it is not a required setup for straight-line depreciation over 5 years.
- ✗
Fixed asset group
Why it's wrong here
The fixed asset group is used for defaulting ledger accounts and other properties, but it does not control the depreciation method or service life. Those are set on the value model. While the group may have a default value model, you still must configure the depreciation profile and service life on the value model itself.
- ✓
Depreciation profile
Why this is correct
The depreciation profile defines the method (straight line) and the calculation frequency. It is a mandatory setting on the value model. Without a depreciation profile, the system cannot calculate depreciation. For straight-line depreciation over 5 years, you would select a profile that uses the Straight line method and annual depreciation.
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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
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