MB-310 Practice Question: Implement and Manage Accounts Payable and Expenses
A vendor invoice for 1,200 EUR is posted on March 15 with an exchange rate to USD of 1.10, resulting in a payable of 1,320 USD. The invoice remains unpaid at the end of the month. On March 31, the exchange rate is 1.15. The accounts payable manager runs the foreign currency revaluation for accounts payable. Which ledger account is debited by the revaluation posting, and for what amount?
⚠ Common exam trap
The trap here is assuming revaluation adjusts the vendor balance itself rather than posting the delta to an unrealized gain or loss ledger account.
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
✓
Unrealized loss account, 60 USD
When the EUR-to-USD rate increases after invoice posting, the USD-equivalent payable grows, creating an unrealized loss. Foreign currency revaluation for accounts payable debits the unrealized loss account and credits the vendor balance for the 60 USD difference. This keeps the payable aligned with the current rate without modifying the original invoice or the vendor master.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Unrealized gain account, 60 USD
Why it's wrong here
A gain would apply if the foreign currency weakened relative to the reporting currency, reducing the payable. Here the rate increased from 1.10 to 1.15, making the EUR-denominated payable more expensive in USD. Posting a gain would misstate both the liability and the P&L, so this account is incorrect for the scenario.
- ✗
Vendor balance account, 1,380 USD
Why it's wrong here
The vendor balance is credited, not debited, by revaluation, and only for the delta of 60 USD, not the full 1,380. Revaluation adjusts the carrying amount of the payable; it does not replace the original invoice posting. Debiting the vendor balance for the full amount would double-count the liability.
- ✗
Vendor balance account, 60 USD
Why it's wrong here
The vendor balance account reflects the original transaction amount and is not adjusted by foreign currency revaluation. Revaluation posts unrealized gain or loss to a ledger account configured for unrealized gain/loss, not to the vendor balance. Debiting the vendor balance here would incorrectly inflate the payable beyond the contractual settlement amount.
- ✓
Unrealized loss account, 60 USD
Why this is correct
Because the EUR strengthened from 1.10 to 1.15, the USD-equivalent payable rises from 1,320 to 1,380, a 60 USD increase. Revaluation debits the unrealized loss account (a profit-and-loss account) for 60 USD and credits the vendor balance account for 60 USD, reflecting the higher settlement obligation without changing the original invoice.
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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
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.