MB-310 Implement Financial Management Practice Question
A company uses Dynamics 365 Finance to manage its fixed assets. The fixed asset manager needs to record the acquisition of a new vehicle. The vehicle was purchased for $30,000 and placed in service on January 15. The company uses the straight-line depreciation method with a 5-year useful life and no salvage value. Which transaction type should the manager use to record the acquisition?
⚠ Common exam trap
The trap here is assuming that depreciation parameters like method and useful life are entered directly on the acquisition transaction, when they are actually defined in the depreciation profile.
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
✓
Acquisition
The 'Acquisition' transaction type is specifically designed to record the purchase or addition of a fixed asset. It captures the cost and the date placed in service, which are essential for calculating depreciation. The depreciation profile (straight-line, 5 years) is configured separately and applied to the asset. Other transaction types like depreciation adjustment or reclassification serve different purposes and would not correctly record the initial acquisition.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Reclassification
Why it's wrong here
Reclassification is used to move an asset from one fixed asset group to another or to change its classification. It does not record the initial acquisition. The acquisition transaction must be used to record the purchase. Reclassification would be used later if the asset needs to be moved to a different group, but it does not establish the asset's initial cost or depreciation parameters.
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Depreciation adjustment
Why it's wrong here
Depreciation adjustment is used to correct or adjust depreciation amounts after they have been posted. It is not used for initial acquisition. Using this transaction type would not properly record the asset's cost basis and would result in incorrect book value. The acquisition must be recorded first to establish the asset's value before any depreciation adjustments can be made.
- ✓
Acquisition
Why this is correct
The 'Acquisition' transaction type is used to record the initial purchase or addition of a fixed asset. When you create an acquisition transaction, you enter the cost and the date placed in service. This sets up the asset's basis for depreciation. The straight-line method and useful life are defined in the depreciation profile, not in the acquisition transaction itself.
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Capital reserve
Why it's wrong here
Capital reserve is a transaction type used in some countries for tax purposes to record reserves related to fixed assets. It is not the standard transaction for recording an acquisition in Dynamics 365 Finance. The acquisition transaction is the correct type to record the purchase and establish the asset's cost. Capital reserve transactions are typically used for statutory reporting adjustments.
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.