MB-310 Manage Fixed Assets Practice Question
A consultant is setting up fixed assets in Dynamics 365 Finance for a new legal entity. The company wants to use the fixed asset module to track assets for both financial reporting and tax reporting, with different depreciation methods for each. Which two configurations are required to support this requirement? (Choose two.)
⚠ Common exam trap
The trap here is thinking that separate fixed asset groups or fiscal calendars are needed to support different depreciation methods, when the key is separate value models linked to the asset.
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
✓
Associate both value models with the fixed asset record.
To track fixed assets for both financial and tax reporting with different depreciation methods, you need separate value models for each book and you must associate both value models with each fixed asset. This allows the system to calculate depreciation independently for each book using the respective methods. Fixed asset groups and fiscal calendars are not the determining factors for multiple depreciation methods.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create separate fixed asset groups for financial and tax reporting.
Why it's wrong here
Separate fixed asset groups are not required to support different depreciation methods. A single fixed asset group can contain assets that have multiple value models. The group primarily controls posting profiles and default value models, but it does not prevent the use of multiple value models with different depreciation methods for the same asset.
- ✗
Enable the 'Create depreciation adjustment with basis adjustment' parameter.
Why it's wrong here
This parameter is related to depreciation adjustments when a basis adjustment occurs, such as a revaluation or a change in acquisition cost. It is not required to support multiple value models with different depreciation methods. Enabling it would not provide the ability to track financial and tax reporting separately.
- ✓
Associate both value models with the fixed asset record.
Why this is correct
Each fixed asset must be associated with the value models that will be used for depreciation. By linking both the financial and tax value models to the asset, the system can track and depreciate the asset in both books. This association is done when creating or editing the fixed asset, and it ensures that transactions are recorded for each value model.
- ✗
Set up a separate fiscal calendar for each value model.
Why it's wrong here
A separate fiscal calendar per value model is not required. The fiscal calendar is defined at the ledger level and is used for depreciation periods. While you can have different depreciation calendars for different value models, the fiscal calendar itself is not duplicated. Setting up separate fiscal calendars would not address the need for different depreciation methods.
- ✓
Create separate value models for financial and tax reporting.
Why this is correct
Separate value models are necessary because each value model can have its own depreciation method, useful life, and conventions. One value model can be used for financial reporting with straight-line depreciation, and another for tax reporting with MACRS or another tax method. This allows the system to calculate and post depreciation independently for each book.
About these practice questions
One of 211 original MB-310 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
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.