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MB-310T00: Microsoft Dynamics 365 Finance Functional Consultant Quiz Questions and Answers

Answer :
  • Interest, collection letters, and collection letter sequences

Explanation :

Configuring interest, collection letters, and sequences is essential for utilizing the Credit and Collections module in Dynamics 365 Finance.2. < 2 > Question: What advanced options does the Accounts Receivable module in Dynamics 365 Finance offer? A) Limited credit assessment and control options B) Fixed terms of payment with no flexibility C) Extensive credit assessment and control options, flexible terms of payment, and cash discounts D) No credit limit customization for customers Correct Answer: C) Extensive credit assessment and control options, flexible terms of payment, and cash discounts Explanation: The Accounts Receivable module provides extensive credit assessment, flexible payment terms, and cash discount options in Dynamics 365 Finance.3. < 3 > Question: How can you determine if the credit limit in Dynamics 365 Finance applies to the total sales order or individual sales order lines? A) It is automatically set by the system B) The credit limit always applies to individual sales order lines C) The credit limit can be customized for each customer D) The credit limit application can be configured based on business needs Correct Answer: D) The credit limit application can be configured based on business needs Explanation: In Dynamics 365 Finance, the application of the credit limit can be customized to apply to the total sales order or individual sales order lines as per business requirements.4. < 4 > Question: What is a key requirement for using the Credit and Collections module in Dynamics 365 Finance? A) Configuring accounts payable correctly B) Setting up customer posting profiles C) Proper configuration of accounts receivable components D) Creating sales orders for all customers Correct Answer: C) Proper configuration of accounts receivable components Explanation: To utilize the Credit and Collections module, it is crucial to configure accounts receivable components accurately in Dynamics 365 Finance.5. &
Answer :
  • Accounts receivable

Explanation :

Proper configuration of accounts receivable is essential to utilize the Credit and collections module in Dynamics 365 Finance.2. < 2 > What advanced options does Accounts receivable in Dynamics 365 Finance offer? A) Extensive options for inventory management B) Flexible terms of payment and cash discount C) Advanced options for human resources D) Extensive options for production planning Correct Answer: B) Flexible terms of payment and cash discount Explanation: Accounts receivable in Dynamics 365 Finance provides flexible terms of payment and cash discount among other advanced options.3. < 3 > In Dynamics 365 Finance, how can you control the credit limit for each customer? A) Apply the same credit limit to all customers B) Set a unique credit limit for each customer C) Determine credit limits based on sales order quantity D) Control credit limits based on payment history Correct Answer: B) Set a unique credit limit for each customer Explanation: Dynamics 365 Finance allows setting a unique credit limit for each customer to manage credit effectively.4. < 4 > What is a key feature of configuring credit and collections components in Dynamics 365 Finance? A) Setting up customer posting profiles B) Configuring aging reports C) Managing inventory levels D) Defining sales order terms Correct Answer: B) Configuring aging reports Explanation: Configuring aging reports is a crucial aspect of setting up credit and collections components in Dynamics 365 Finance.5. < 5 > Which task is NOT included in the process of configuring Accounts receivable components in Dynamics 365 Finance? A) Creating and maintaining a customer B) Configuring customer payments C) Setting up customer posting profiles D) Configuring inventory valuation methods Correct Answer: D) Configuring inventory valuation methods Explanation: Configuring inventory valuation methods is not part of the Accounts receivable component setup in Dynamics 365 F
Answer :
  • Configuring customer payments

Explanation :

General ledger daily procedures involve tasks like reconciling bank statements, posting journal entries, and generating financial statements, not configuring customer payments.2. < 2 > Question: In Dynamics 365 Finance, what is the purpose of running the "Trial balance " report as part of general ledger daily procedures? A) To track customer payments B) To reconcile bank statements C) To verify the accuracy of accounts D) To configure credit limits Correct Answer: C) To verify the accuracy of accounts Explanation: The "Trial balance " report helps in verifying the accuracy of accounts by listing all general ledger accounts and their balances.3. < 3 > Question: During general ledger daily procedures, what is the significance of posting adjusting entries? A) To configure customer pools B) To reconcile bank statements C) To correct errors and ensure accurate financial reporting D) To set up customer posting profiles Correct Answer: C) To correct errors and ensure accurate financial reporting Explanation: Posting adjusting entries is crucial in correcting errors and ensuring accurate financial reporting during daily procedures.4. < 4 > Question: Which of the following tasks is NOT typically part of the general ledger daily procedures in Dynamics 365 Finance? A) Running depreciation calculations B) Reconciling accounts payable C) Posting recurring journal entries D) Configuring aging reports Correct Answer: D) Configuring aging reports Explanation: General ledger daily procedures involve tasks like running depreciation calculations, reconciling accounts payable, and posting recurring journal entries, not configuring aging reports.5. < 5 > Question: In Dynamics 365 Finance, what is the purpose of performing bank reconciliations as part of general ledger daily procedures? A) To configure credit limits B) To track customer payments C) To ensure accuracy between bank records and company records D) To set up custom
Answer :
  • Budget planning workflows

Explanation :

Budget planning workflows in Dynamics 365 Finance help define the steps and approval processes for creating and managing budgets.2. < 2 > Question: In budget planning within Dynamics 365 Finance, what is the purpose of setting up budget planning stages? A) To allocate budget amounts to specific accounts B) To define the workflow for budget approval C) To calculate variance between actual and budgeted amounts D) To generate budget reports for analysis Correct Answer: B) To define the workflow for budget approval Explanation: Budget planning stages in Dynamics 365 Finance help establish the sequential steps for budget creation, review, and approval.3. < 3 > Question: Which tool in Dynamics 365 Finance allows users to create budget planning templates for different departments or projects? A) Budget allocation wizard B) Budget planning workspace C) Budget plan configuration tool D) Budget plan template designer Correct Answer: D) Budget plan template designer Explanation: The budget plan template designer in Dynamics 365 Finance enables the creation of customized budget planning templates for various entities.4. < 4 > Question: In Dynamics 365 Finance, what is the purpose of defining budget control rules when setting up budget planning? A) To restrict access to budget planning features B) To enforce budget limits and prevent overspending C) To automate the budget approval process D) To generate budget variance reports Correct Answer: B) To enforce budget limits and prevent overspending Explanation: Budget control rules in Dynamics 365 Finance help ensure that budgeted amounts are not exceeded by enforcing limits and restrictions.5. < 5 > Question: When configuring budget planning in Dynamics 365 Finance, what role does the budget manager typically play in the budget approval process? A) Initiates the budget planning process B) Reviews and approves budget proposals C) Monitors actual spending against budgeted amou
Answer :
  • Both revenue and expense accounts

Explanation :

Customer payments involve both revenue (credit) and cash (debit) accounts to accurately reflect the transaction.2. < 2 > Question: What is the purpose of configuring recurring invoices in Dynamics 365 Finance for accounts receivable? A) To record one-time customer payments B) To automate the creation of regular invoices C) To manage customer refunds D) To adjust credit limits for customers Correct Answer: B) To automate the creation of regular invoices Explanation: Configuring recurring invoices allows for the automated generation of invoices at specified intervals for regular billing.3. < 3 > Question: In Dynamics 365 Finance, what is the significance of using reversals in Accounts Receivable? A) To increase customer credit limits B) To cancel incorrect transactions C) To adjust cash discounts for customers D) To create new customer accounts Correct Answer: B) To cancel incorrect transactions Explanation: Reversals in Accounts Receivable are used to undo or cancel incorrect transactions that have been recorded.4. < 4 > Question: How does Dynamics 365 Finance handle revenue recognition for accounts receivable transactions? A) Automatically recognizes revenue upon invoice creation B) Recognizes revenue only upon customer payment C) Recognizes revenue based on customer credit limits D) Does not support revenue recognition Correct Answer: A) Automatically recognizes revenue upon invoice creation Explanation: Dynamics 365 Finance typically recognizes revenue automatically upon the creation of invoices in the system.5. < 5 > Question: What options does Dynamics 365 Finance offer for credit assessment and control in Accounts Receivable? A) Limited options for credit assessment B) Extensive options for credit assessment and control C) No options for credit assessment D) Options for credit assessment only for specific customers Correct Answer: B) Extensive options for credit assessment and control Explanation:
Answer :
  • Budget control

Explanation :

Budget control must be configured to effectively use budget planning in Dynamics 365 Finance.2. < 2 > What is the purpose of setting up budget planning in Dynamics 365 Finance? A) To track historical data B) To forecast future expenses C) To manage customer relationships D) To automate inventory replenishment Correct Answer: B) To forecast future expenses Explanation: Budget planning helps in forecasting future expenses and managing financial resources effectively.3. < 3 > How can budget planning assist organizations in financial decision-making? A) By automating payroll processes B) By providing insights into cash flow C) By managing employee benefits D) By optimizing supply chain operations Correct Answer: B) By providing insights into cash flow Explanation: Budget planning provides insights into cash flow, aiding organizations in financial decision-making.4. < 4 > In Dynamics 365 Finance, what is the significance of configuring budget control rules? A) To restrict access to financial data B) To enforce compliance with budget limits C) To automate invoice processing D) To manage employee performance Correct Answer: B) To enforce compliance with budget limits Explanation: Configuring budget control rules ensures compliance with budget limits in Dynamics 365 Finance.5. < 5 > Which feature in Dynamics 365 Finance allows users to compare actual financial data with budgeted amounts? A) Financial reporting B) Cash flow forecasting C) Budget variance analysis D) Inventory valuation Correct Answer: C) Budget variance analysis Explanation: Budget variance analysis in Dynamics 365 Finance enables users to compare actual financial data with budgeted amounts.6. < 6 > How does budget planning contribute to strategic financial management in organizations? A) By automating customer service processes B) By optimizing production schedules C) By aligning financial goals with operational activities D) By man
Answer :
  • Creating customer profiles

Explanation :

Customer profiles are not directly related to configuring the chart of accounts.2. < 2 > When setting up financial dimensions in Dynamics 365 Finance, what is the purpose of defining dimension values? A) To categorize transactions for reporting B) To create new main accounts C) To calculate interest on overdue payments D) To generate collection letters Correct Answer: A) To categorize transactions for reporting Explanation: Dimension values help categorize transactions for accurate reporting and analysis.3. < 3 > In Dynamics 365 Finance, why is it important to assign default dimensions to main accounts? A) To track customer payments B) To automate invoice generation C) To ensure consistency in reporting D) To calculate sales tax Correct Answer: C) To ensure consistency in reporting Explanation: Assigning default dimensions maintains consistency in reporting across transactions.4. < 4 > Which feature in Dynamics 365 Finance allows for the creation of custom financial dimensions? A) Dimension sets B) Dimension values C) Dimension groups D) Dimension hierarchies Correct Answer: A) Dimension sets Explanation: Dimension sets enable the creation of custom financial dimensions for specific reporting needs.5. < 5 > How does configuring the chart of accounts impact financial reporting in Dynamics 365 Finance? A) It affects the calculation of interest rates B) It determines the layout of collection letters C) It influences the structure of financial statements D) It automates customer payment processing Correct Answer: C) It influences the structure of financial statements Explanation: The chart of accounts directly impacts the structure and accuracy of financial statements.6. < 6 > What is the primary purpose of mapping main accounts to financial dimensions in Dynamics 365 Finance? A) To calculate employee salaries B) To track inventory levels C) To analyze revenue sources D) To manage vendor relatio
Answer :
  • Employee payroll details

Explanation :

Employee payroll details are not directly related to managing fixed assets but rather to human resources management.2. < 2 > When recording a fixed asset acquisition in Dynamics 365 Finance, which account is typically credited? A) Accumulated depreciation account B) Fixed asset account C) Accounts payable account D) Revenue account Correct Answer: C) Accounts payable account Explanation: When acquiring a fixed asset, the accounts payable account is credited to reflect the liability created.3. < 3 > Which depreciation method calculates depreciation based on the asset's usage or output rather than time? A) Straight-line depreciation B) Double-declining balance depreciation C) Units of production depreciation D) Sum-of-the-years-digits depreciation Correct Answer: C) Units of production depreciation Explanation: Units of production depreciation method calculates depreciation based on the asset's usage or output.4. < 4 > In Dynamics 365 Finance, what is the purpose of running depreciation proposals? A) To calculate the salvage value of fixed assets B) To determine the useful life of fixed assets C) To estimate the depreciation expense for a period D) To record the disposal of fixed assets Correct Answer: C) To estimate the depreciation expense for a period Explanation: Running depreciation proposals helps in estimating the depreciation expense that will be recognized in a specific period.5. < 5 > Which financial statement is directly impacted by the depreciation of fixed assets in Microsoft Dynamics 365 Finance? A) Income statement B) Balance sheet C) Cash flow statement D) Statement of changes in equity Correct Answer: A) Income statement Explanation: Depreciation of fixed assets is an expense that affects the income statement by reducing net income.6. < 6 > How does Dynamics 365 Finance handle the disposal of fixed assets? A) By automatically transferring the asset to a disposal account B) By dele
Answer :
  • Assigning fiscal calendars to specific vendors

Explanation :

Fiscal calendars are assigned to legal entities, not specific vendors.2. < 2 > In Dynamics 365 Finance, what is the purpose of defining fiscal year parameters? A) To determine the number of working days in a fiscal year B) To specify the start and end dates of the fiscal year C) To set up automatic budget allocations for each fiscal year D) To calculate the total revenue generated in a fiscal year Correct Answer: B Explanation: Fiscal year parameters define the duration of the fiscal year.3. < 3 > When configuring fiscal year closing rules, what action is typically performed in Dynamics 365 Finance? A) Automatically transferring balances to the next fiscal year B) Deleting all financial transactions from the current fiscal year C) Locking the fiscal year to prevent any further transactions D) Adjusting the fiscal year start date based on business needs Correct Answer: C Explanation: Closing rules lock the fiscal year to prevent additional transactions.4. < 4 > Which module in Dynamics 365 Finance allows users to create and manage fiscal calendars? A) Accounts Payable B) General Ledger C) Fixed Assets D) Inventory Management Correct Answer: B Explanation: The General Ledger module handles fiscal calendars and financial periods.5. < 5 > How does Dynamics 365 Finance handle overlapping fiscal year periods? A) It automatically adjusts the start and end dates of the fiscal years B) It prevents users from creating overlapping fiscal year periods C) It allows for overlapping periods to accommodate different reporting needs D) It merges overlapping periods into a single fiscal year Correct Answer: B Explanation: Dynamics 365 Finance does not allow overlapping fiscal year periods.6. < 6 > What is the significance of creating multiple fiscal calendars in Dynamics 365 Finance? A) To track financial data for different legal entities B) To manage budgeting and forecasting for various departments C) To acco
Answer :
  • Asset maintenance schedule

Explanation :

While asset maintenance is important, it is not a key component for managing fixed assets in Dynamics 365 Finance.2. < 2 > In Dynamics 365 Finance, what is the purpose of setting up asset groups for fixed assets? A) To track asset depreciation B) To categorize assets for reporting C) To calculate asset salvage value D) To determine asset acquisition cost Correct Answer: B Explanation: Asset groups help categorize fixed assets for better reporting and analysis in Dynamics 365 Finance.3. < 3 > When recording a fixed asset acquisition in Dynamics 365 Finance, which information is essential to include? A) Asset depreciation history B) Asset disposal method C) Asset purchase price D) Asset maintenance schedule Correct Answer: C Explanation: The asset purchase price is crucial information to record when acquiring a fixed asset in Dynamics 365 Finance.4. < 4 > How does Dynamics 365 Finance handle the calculation of depreciation for fixed assets? A) Manual calculation by users B) Automatic calculation based on predefined methods C) Depreciation is not calculated in Dynamics 365 Finance D) Depreciation is calculated annually only Correct Answer: B Explanation: Dynamics 365 Finance automates the calculation of depreciation for fixed assets based on predefined methods.5. < 5 > In Dynamics 365 Finance, what is the purpose of running depreciation proposals for fixed assets? A) To adjust asset acquisition dates B) To calculate asset maintenance costs C) To review and approve depreciation amounts D) To dispose of fixed assets Correct Answer: C Explanation: Running depreciation proposals allows users to review and approve calculated depreciation amounts for fixed assets in Dynamics 365 Finance.6. < 6 > Which feature in Dynamics 365 Finance allows users to track the physical location of fixed assets? A) Asset depreciation history B) Asset transfer orders C) Asset disposal process D) Asset maintenance schedul