Microsoft (MB-310): Dynamics 365 for Finance and Operations Sample Questions
Advanced Sample Questions
What is a sales quotation in Dynamics 365 for Finance and Operations?
- A. A document that represents a commitment to sell a specific quantity of goods or services to a customer.
- B. A non-binding document that represents a potential commitment to sell a specific quantity of goods or services to a customer.
- C. A document that represents the purchase of goods or services from a vendor.
- D. A document that represents a payment from a customer.
Answer: B. A non-binding document that represents a potential commitment to sell a specific quantity of goods or services to a customer.
Explanation: A sales quotation in Dynamics 365 for Finance and Operations is a non-binding document that represents a potential commitment to sell a specific quantity of goods or services to a customer. It includes information such as the product or service, quantity, price, delivery terms, and payment terms. The purpose of a sales quotation is to give the customer an estimated price for the product or service and the terms under which it can be delivered, which the customer can then use to make an informed decision about whether to make a purchase.
What is a purchase requisition in Dynamics 365 for Finance and Operations?
- A. A document that represents a commitment to purchase a specific quantity of goods or services from a vendor.
- B. A document that represents a request to purchase a specific quantity of goods or services from a vendor.
- C. A document that represents a commitment to sell a specific quantity of goods or services to a customer.
- D. A document that represents a payment from a customer.
Answer: B. A document that represents a request to purchase a specific quantity of goods or services from a vendor.
Explanation: A purchase requisition in Dynamics 365 for Finance and Operations is a document that represents a request to purchase a specific quantity of goods or services from a vendor. It includes information such as the product or service, quantity, and delivery date. The purpose of a purchase requisition is to request the necessary materials or services to fulfill a particular need or demand, which can then be used to create a purchase order.
What is a production order in Dynamics 365 for Finance and Operations?
- A. A document that represents a commitment to sell a specific quantity of goods or services to a customer.
- B. A document that represents the purchase of goods or services from a vendor.
- C. A document that represents a request to purchase a specific quantity of goods or services from a vendor.
- D. A document that represents the creation of a specific quantity of goods.
Answer: D. A document that represents the creation of a specific quantity of goods.
Explanation: A production order in Dynamics 365 for Finance and Operations is a document that represents the creation of a specific quantity of goods. It includes information such as the quantity of items to be produced, the raw materials required, the process to be followed, and the time frame for completion. The purpose of a production order is to provide instructions to the production team about what to produce, how to produce it, and when to produce it, which can then be used to create a production schedule.
What is a purchase order in Dynamics 365 for Finance and Operations?
- A. A document that represents a commitment to sell a specific quantity of goods or services to a customer.
- B. A document that represents the purchase of goods or services from a vendor.
- C. A document that represents a request to purchase a specific quantity of goods or services from a vendor.
- D. A document that represents a payment from a customer.
Answer: B. A document that represents the purchase of goods or services from a vendor.
What is a product configuration model in Dynamics 365 for Finance and Operations?
- A. It is a set of product attributes that can be used to configure products.
- B. It is a product master that is used to manage all product information.
- C. It is a pricing model that defines how products are priced.
- D. It is a set of rules that define how products can be used in different scenarios.
Answer: A. It is a set of product attributes that can be used to configure products.
Explanation: A product configuration model in Dynamics 365 for Finance and Operations is a set of product attributes that can be used to configure products. This allows customers to choose the features and options that they want for a product. Product configuration models are used in industries such as manufacturing, retail, and automotive.
What is a vendor collaboration portal in Dynamics 365 for Finance and Operations?
- A. It is a website that vendors can use to collaborate with customers.
- B. It is a tool that allows vendors to manage their own products and pricing.
- C. It is a portal that vendors can use to manage purchase orders and invoices.
- D. It is a tool that allows vendors to manage their own account information.
Answer: C. It is a portal that vendors can use to manage purchase orders and invoices.
Explanation: A vendor collaboration portal in Dynamics 365 for Finance and Operations is a portal that vendors can use to manage purchase orders and invoices. This allows vendors to see the status of their purchase orders and invoices and to provide updates as needed. Vendor collaboration portals can also be used to communicate with customers and to provide additional information about products and services.
What is a warehouse management system (WMS) in Dynamics 365 for Finance and Operations?
- A. It is a tool that allows users to manage warehouse inventory and operations.
- B. It is a module that is used to manage the financial aspects of warehouse operations.
- C. It is a set of reports and dashboards that provide insights into warehouse performance.
- D. It is a tool that is used to manage transportation and logistics operations.
Answer: A. It is a tool that allows users to manage warehouse inventory and operations.
Explanation: A warehouse management system (WMS) in Dynamics 365 for Finance and Operations is a tool that allows users to manage warehouse inventory and operations. This includes tasks such as receiving and putaway, picking and packing, and shipping and returns. WMS functionality is often used in conjunction with other modules, such as inventory management and production control, to provide a complete view of warehouse operations.
What is the purpose of the cash and bank management module in Dynamics 365 for Finance and Operations?
- A. It is used to manage accounts payable and accounts receivable.
- B. It is used to manage financial transactions related to cash and banking.
- C. It is used to manage customer orders and sales transactions.
- D. It is used to manage vendor orders and purchase transactions.
Answer: B. It is used to manage financial transactions related to cash and banking.
Explanation: The cash and bank management module in Dynamics 365 for Finance and Operations is used to manage financial transactions related to cash and banking. This includes tasks such as creating and managing bank accounts, reconciling bank statements, and processing payments and receipts. The module provides a complete view of cash and banking transactions across the organization and can be used to create reports and insights into financial performance.
Which of the following modules is not included in Dynamics 365 for Finance and Operations?
- a. Financials
- b. Sales and Marketing
- c. Supply Chain Management
- d. Human Resources
Answer: b.
Explanation: Sales and Marketing. Dynamics 365 for Finance and Operations does not include a dedicated Sales and Marketing module, although it does provide functionality for managing customer relationships and sales orders.
What is the purpose of the General Ledger module in Dynamics 365 for Finance and Operations?
- a. To manage customer and vendor transactions b. To manage fixed assets and depreciation
- c. To manage bank accounts and reconcile transactions
- d. To record financial transactions and generate financial statements
Answer: d. To record financial transactions and generate financial statements. The General Ledger module is used to record all financial transactions in the system and generate financial statements such as balance sheets, income statements, and cash flow statements.
Basic Sample Questions
Question 1. It may be necessary to implement posting definitions for a client with unique accounting requirements.
In which situation will you implement posting definitions?
- A. when financial dimensions are required to default from the vendor record onto an invoice
- B. when only certain dimensions have permission to post with certain main account combinations
- C. when creating multiple balanced ledger entries that are based on transaction types or accounts
- D. when the system requires automatic posting of a transaction to the accounts receivable account on invoice posting
Correct Answer: D
Question 2. You are setting up fiscal calendars for Dynamics 365 Finance for an organization that is setting up cost accounting.
What are three uses for fiscal calendars?
- A. standard work hours
- B. financial transactions
- C. fixed asset depreciation
- D. budget cycles
- E. shift work hours
Correct Answer: BCD
Question 3. The company wants to import the bank statements for its multiple bank accounts, and you are configuring automatic bank reconciliation functionality.
You are required to import electronic bank statements for reconciling the bank accounts.
Which three of the given actions can you perform?
- A. Selecting all the bank accounts for the bank statement files, and then uploading all files
- B. Selecting Account reconciliation on the bank account form
- C. Importing bank statements from the Data management workspace
- D. Navigating to Import statement on the Bank Statements page of Cash and Bank Management
- E. Selecting Import statements for multiple bank accounts in all legal entities, and then uploading a zip file
Correct Answer: BDE
Question 4. An organization plans to create a new allocation rule for electric utility expenses, which must comply with the following conditions:
- Distributing overhead utility expenses to each department.
- Defining how and in what proportion the source amounts must be distributed on various destination lines.
You must configure the allocation rule. Which of the following allocation method would you use?
- A. Distribute the source document amount equally
- B. Fixed weight
- C. Equally
- D. Basis
Correct Answer: D
Question 5. Employee life insurance is provided to all full-time employees by the company that is paid twice a year to the insurance company.
New employees’ transactions must be recognized in the general ledger upon their first pay date, while transactions for existing employees must be recognized twice a month with their pay.
You are supposed to configure accrual schemes for the new fiscal year.
Which two of the given configurations will you use?
- A. For new employees, using a Credit accrual scheme. In the ledger accrual, setting the offset to the first day of the fiscal year.
- B. For current employees, using a Credit accrual scheme. In the ledger accrual, setting the offset to the employee’s first pay date.
- C. For new employees, using a Debit accrual scheme. In the ledger accrual, setting the offset to the employee’s first pay date.
- D. For current employees, using a Debit accrual scheme. In the ledger accrual, setting the offset to the first day of the fiscal year.
Correct Answer: BD
Question 6. There are several posted journal entries in an organization that uses Dynamics 365 Finance that contain invalid main account and dimension combinations, which causes financial reports to be inaccurate.
You must prevent these invalid combinations.
What would you do?
- A. Configuring the account structure for specifying which financial dimensions are valid for which main accounts.
- B. Training users to select the Validate button in the current journal configuration so that the correct account and dimension combination is used.
- C. Configuring financial dimension sets for limiting which financial dimensions are valid for which main accounts.
- D. Associating the correct main accounts to that financial dimension on the financial dimension setup form.
Correct Answer: A
Question 7. Your legal entity may have locations and customers in more than one state within the country. It is important to ensure that the taxable customers in the state they reside in are charged sales tax on items delivered to the state they reside in.
Which three settings will you configure?
- A. Sales tax group on the Customer record
- B. Terms of delivery setup
- C. Item Sales tax group on the Item record
- D. Sales reporting codes
- E. Sales tax codes
Correct Answer: ABE
Question 8. Configuring Dynamics 365 Finance requires you to implement posting definitions for each available transaction type.
For which kind of transactions could you implement posting definitions?
- A. Accounts payable, Accounts receivable, Bank, Budget, Payroll, and Purchasing
- B. Accounts payable, Bank, Budget, Fixed assets, and Payroll
- C. Accounts payable, Accounts receivable, Fixed assets, Payroll, and Purchasing
- D. Accounts payable, Accounts receivable, Budget, and Fixed assets
Correct Answer: A
Question 9. In a public sector company, encumbrance is configured for managing capital budgets. Defining posting definitions for bank transactions is a requirement for the finance department.
Your job is to configure Dynamics 365 Finance for cash settlements.
What should you do?
- A. Configuring combined deposit amounts
- B. Configuring budget appropriations
- C. Configuring general ledger year-end close
- D. Configuring advanced ledger entries
Correct Answer: A
Question 10. An organization is planning to set up intercompany accounting between the legal entities within itself.
Automatic transactions between legal entities are required to meet the following requirements:
- Providing systemwide integration and streamlining to save time.
- Minimizing errors and creating an audit trail with full visibility into business activities and transaction histories within the legal entities.
Intercompany accounting needs to be set up, as well as the creation of legal entities that can transact with each other, with the originating company and the destination company clearly identified.
Which three of the following actions must you perform?
- A. Selecting intercompany journal names.
- B. Configuring intercompany accounting in both the originating entity and destination entity.
- C. Creating intercompany main accounts for using for the due to and due from accounting entries.
- D. Defining intercompany accounting setup by creating legal entity pairs defining originating and destination companies.
- E. Configuring intercompany accounting in the destination entity only.
Correct Answer: ACD
Reference: https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/intercompany-accounting-setup
Question 11. Being a Dynamics 365 Finance expert, you have to configure the Financial period close workspace.
Which three of the following configuration processes will you use?
- A. Creating templates containing the required tasks within the closing process and assigning to closing role.
- B. Creating a separate closing schedule for every legal entity.
- C. Assigning a ledger calendar to the closing process.
- D. Creating task areas and descriptions.
- E. Designating resources and their scope based on closing roles.
Correct Answer: ADE
Reference: https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/financial-period-close-workspace
Question 12. In your role as a Dynamics 365 Finance consultant, you are not able to collaborate or track progress toward month-end close across legal entities in the current system.
What would you configure?
- A. Financial reporting
- B. Financial insights workspace
- C. Electronic reporting
- D. Financial period close workspace
Correct Answer: D
Reference: https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/financial-period-close-workspace
Question 13. As a Dynamics 365 Finance consultant, you plan the configuration of the allocation base, cost behavior, and cost distribution.
Which three of the goven actions will these configurations accomplish?
- A. Spreading costs from one cost object to one or more other cost objects by applying a relevant allocation base.
- B. Measuring and quantifying activities, hours that are used, kilowatt-hours that are consumed, or square footage that is occupied.
- C. Spreading the balance of the cost from one cost object to one or more other cost objects by applying a relevant allocation base.
- D. Controlling which journals can be used in the costing process.
- E. Classifying costs according to their behavior in relation to changes in key business activities.
Correct Answer: ABE
Reference: https://docs.microsoft.com/en-us/dynamics365/finance/cost-accounting/terms-cost-accounting
Question 14. You are a finance consultant, and your client wants you to configure cash flow forecasting.
Cash flow forecasts for other main accounts should be based on certain percentages of main accounts, and you must configure Dynamics 365 for Finance for meeting the needs of the client.
What should you do?
- A. On the Cash flow forecasting setup form, configuring the primary main account for assigning a percentage to the dependent account.
- B. Configuring the parent/child relationship for the main account and subaccounts using appropriate percentages.
- C. Configuring the cash flow forecasting setup for Accounts Payable before configuring vendor posting profiles.
- D. On the Cash flow forecasting setup form, using the Dependent Accounts setup for specifying which account and percentage is associated to the main account.
Correct Answer: D
Reference: https://docs.microsoft.com/en-us/dynamics365/finance/cash-bank-management/cash-flow-forecasting
Question 15. Dynamics 365 Finance is to be used to calculate sales tax on sales orders, and sales tax is to be calculated automatically as the sales order is being created.
Whiat actions will you perform?
- A. Assigning values to the sales tax codes and assigning the sales tax codes to the sales tax group associated to the customer.
- B. Assigning all sales tax codes to the item sales tax group that is associated to the item being sold.
- C. Setting up a default item sales tax group on the item being sold and setting up a default sales tax group on the customer used on the sales order.
- D. Associating the sales tax jurisdictions to the item sales tax group associated to the item being sold.
- E. Setting up a default sales tax code on the customer used on the sales order and setting up a default item sales tax group on the item being sold.
Correct Answer: ABE
Reference: https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/indirect-taxes-overview
Question 16. When an item is added to a sales order line, a client wants Dynamics 365 Finance to calculate sales tax, but the sales tax group is already filled in.
You are required to ensure that the sales tax will get calculated.
Which field will you populate?
- A. sales tax code
- B. item group
- C. customer address
- D. item sales tax group
Correct Answer: D
Reference: https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/indirect-taxes-overview
Question 17. Upon creating a sales order, a customer reports that sales tax does not calculate on the line when using Dynamics 365 Finance’s sales tax functionality. You must determine why sales tax is not calculated.
What could be the two possible reasons?
- A. sales tax group is populated on the line, however the item sales tax group is missing.
- B. sales tax settlement account is incorrectly configured.
- C. sales tax authority is set up for and incorrect jurisdiction.
- D. sales tax code and item sales tax code are selected, however the sales tax group is not associated with both the codes.
- E. sales tax group and item sales tax group are selected, however the sales tax code is not associated with both the groups.
Correct Answer: AE
Reference: https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/indirect-taxes-overview
Question 18. This client would like guidance on month-end closing procedures, and needs to be able to prevent all departments except Accounts Payable and General Ledger from posting month-end transactions.
During the period being closed, Dynamics 365 Finance should only allow transactions from those two teams.
Which three actions would you perform?
- A. Creating an access group called month end access for Accounts payable and General ledger team members.
- B. Setting all modules to none for preventing any transactions from being posted.
- C. Configuring the financial period close workspace tasks to the Accounts payable and General ledger teams only
- D. Moving the period status for on hold for your client’s one legal entity.
- E. Assigning the security group month end access on the ledger calendar form for the modules they need access to.
Correct Answer: ACE
Question 19. For a period of six months, the main account for one of the legal entities must be different from the main account for the other.
Your job is to configure the legal entity override dates.
Which two of the given actions would you perform?
- A. Setting the value of the override date field at the legal entity level to be more restrictive.
- B. Setting the value of the override date field at the shared level to be more restrictive.
- C. Setting the value of the override date field at the legal level to be less restrictive.
- D. Setting the value of the override date field at the shared level to be less restrictive.
Correct Answer: AD
Reference: https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/plan-chart-of-accounts
Question 20. In a client’s organization, there are one legal entity, two departments, and two divisions. As part of the Dynamics 365 Finance implementation, the client is setting up the financial dimensions for the departments and divisions.
The client has the following requirements:
- Only expense accounts will be requiring dimensions posted with the transactions.
- Users should not have the option of selecting dimensions for a balance sheet account.
The ledger must be configured so that applicable financial dimensions are displayed based on the main account selected for journal entry.
Solution: Configure default financial dimensions on expense accounts only.
Does the solution meet the goal?
- A. Yes
- B. No
Correct Answer: B
Reference: https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/configure-account-structures
