MB-310 Manage Fixed Assets Practice Question
A fixed asset accountant needs to transfer a fully depreciated asset from the Production department to the Marketing department, but the asset will remain in service and continue to be tracked. The transfer should not affect the asset's financial value. Which action should the accountant perform in Dynamics 365 Finance?
⚠ Common exam trap
The trap here is thinking that changing the department requires disposing and reacquiring the asset, which would incorrectly reset its financial history.
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
✓
Create a fixed asset transfer journal.
A fixed asset transfer journal is the correct tool to move an asset between departments or financial dimensions without altering its financial value. It updates the asset's assignment while preserving acquisition cost and accumulated depreciation, ensuring the transfer is auditable and future postings reflect the new department.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Post a disposal transaction for the Production department and an acquisition for the Marketing department.
Why it's wrong here
Disposing and reacquiring the asset would remove it from the books and create a new asset record, which changes the financial history and may trigger gain or loss postings. This approach does not preserve the asset's original cost and depreciation, so it fails the requirement that the transfer not affect financial value.
- ✗
Create a reclassification journal for the fixed asset.
Why it's wrong here
A reclassification journal is used to change the classification of an asset, such as moving it to a different fixed asset group, but it does not handle departmental transfers. It may also affect posting profiles and depreciation, which is not desired when only the department dimension needs to change.
- ✓
Create a fixed asset transfer journal.
Why this is correct
A fixed asset transfer journal is used to move an asset from one financial dimension or location to another without changing its financial value. It updates the dimension or location on the asset record while leaving acquisition cost and depreciation intact, which exactly matches the requirement to transfer the asset between departments.
- ✗
Modify the department financial dimension directly on the fixed asset record.
Why it's wrong here
Directly editing the financial dimension on the fixed asset record does not create an audit trail and may not update historical transactions. Dynamics 365 Finance requires a transfer journal to properly record the movement and ensure that future transactions use the new department dimension.
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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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