MB-310 Online Practice Questions and Answers

Correct Answer: D

CustomerX is a taxable company.

CustomerX requires a credit check when making a purchase and is currently at their credit limit.

Reporting: financial reporting inclusive and exclusive of year-end adjustments.

Correct Answer: B

Correct Answer: B

Correct Answer: B

The following methods are available for integrating Fixed assets and Accounts payable, and you must use the same method for all fixed assets:

*

You manually create a fixed asset before you add the fixed asset number to the line on the purchase order or vendor invoice. No acquisition transaction is posted for the asset when you post the vendor invoice.

Note: Also

*

You manually create a fixed asset before you add the fixed asset number to the line on the purchase order or vendor invoice. An acquisition transaction automatically is posted for the asset when you post the vendor invoice. This is the

default method.

*

A fixed asset automatically is created when you post a product receipt or vendor invoice that has the Create a new fixed asset check box selected. An acquisition transaction automatically is posted for the asset when you post the vendor

invoice.

*

A fixed asset automatically is created when you post a product receipt or vendor invoice that has the Create a new fixed asset check box selected. No acquisition transaction is posted for the asset when you post the vendor invoice.

Reference:

https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/acquire-assets-procurement

Correct Answer:

Box 1: Specify a business unit, department, cost center, and customer.

Example

To illustrate a best practice for setting up an account structure, let's assume that a company wants to track their balance sheet accounts (100000..399999) at the account and business unit financial dimension level. For revenue and expense

accounts (400000..999999), they track financial dimensions Business Unit,

Department, and Cost center. If they make a sale, they also like to track Customer. Using this scenario, it would be recommended to have two account structures assigned to the company's ledger - one for Balance sheet accounts, and one for

Profit and Loss accounts. To optimize the user experience and validation,

Customer should be an advanced rule that is only used when a sales account is used.

Box 2: 2

Reference:

https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/configure-account-structures

Correct Answer:

Box 1: Double declining balance When you set up a fixed asset depreciation profile and select 200% reducing balance in the Method field on the Depreciation profiles page, fixed assets that are assigned the depreciation profile are depreciated by the same percentage in

each depreciation period. The percentage is calculated based on the service life of the asset. For example, if an asset has a service life of five years, the percentage is calculated as 40 percent (

5 · 200% This method is also known as double declining balance.

Box 2: Straight line When you set up a fixed asset depreciation profile and select Straight line service life in the Method field in the Depreciation profiles page, the assets that have this depreciation profile assigned to them are depreciated based on the total service life of the asset. This generally is the same depreciation amount in each depreciation period.

Reference:

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).

https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/200-percent-reducing-balance-depreciation https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/straight-line-service-life-depreciation

Correct Answer:

Explanation:

Box 1: Capitalization threshold

Capitalization threshold - Enter the capitalization threshold amount to use as the default value for fixed asset groups.

The Capitalization threshold field determines the assets that are depreciated. If a purchase line is selected as a fixed asset, but it doesn't meet the specified capitalization threshold, a fixed asset is still created or updated, but the Calculate

depreciation option is set to No. Therefore, the asset won't be automatically depreciated as part of the depreciation proposals.

Incorrect:

* Consider capitalization threshold

Select this check box to require that the system verify that the acquisition price of an asset on an Accounts payable invoice meets or exceeds the amount needed to depreciate the asset.

For example, suppose a fixed asset group has a capitalization threshold of 2,500. When you post an invoice with an asset in that group, the system can verify that the acquisition transaction that is created has an acquisition price of at least

2,500. The Depreciationcheck box in the value model of the asset will be selected automatically if the acquisition price meets the threshold.

Box 2: Allow asset acquisition from purchasing

Methods for manually creating fixed assets

When you post a vendor invoice that has a fixed asset number entered in the lines, if the Allow asset acquisition from Purchasing option is selected in the Fixed assets parameters page, the acquisition is posted automatically, and the status of

the asset changes to Open.

Note: Acquisition Fixed Asset from Purchasing before Invoicing in Dynamics 365 Finance.

First, create a purchase order with New Fixed Asset ticked and put the Asset Group at the PO Line details at Fixed Assets tab.

Incorrect:

* Check for fixed asset creation during line entry

Reference: https://learn.microsoft.com/en-us/dynamics365/finance/fixed-assets/set-up-fixed-assets https://www.linkedin.com/pulse/acquisition-fixed-asset-from-purchasing-before-invoicing-kusman-lim?trk=articles_directory

Correct Answer:

Box 1: Humongous Insurance

Taxes

1.

As part of the spinoff to a subsidiary, Humongous Insurance's subsidiaries taxes must be changed from US government rates to Chinese government rates.

2.

Humongous Insurance's subsidiary must track use taxes that are not claimed or reported to the Chinese tax agency.

In the Legal entity for intercompany tax posting field, select whether to post intercompany tax amounts to the legal entity where the transaction originates or to the legal entity where the intercompany transactions are posted to. Use the

information in the following table to decide which legal entity to select.

Destination - Select this option if your organization uses U.S. sales and use tax. (This is your only option if the Apply U.S. taxation rules option is selected in the

General ledger parameters form.)

Sales tax amounts for intercompany transactions are posted to the legal entity that the expense or revenue is being distributed to.

Source - Sales tax amounts for intercompany transactions are posted to the legal entity where the payable to the vendor, the receivable to the customer, or a bank account is recorded.

Note:

Intercompany transaction - A transaction between legal entities that are part of the same organization that consolidates the accounts of the legal entities.

Destination legal entity - The legal entity that the expense or revenue is being distributed to, or a bank account.

Source legal entity - The legal entity where the payable to the vendor or the receivable to the customer is recorded.

Box 2: Humongous Insurance

Box 3: Humongous Insurance subsidiary

Box 4: Humongous Insurance

Reference:

https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/posting-sales-tax-amounts-for-intercompany-transactions

Correct Answer:

Correct Answer:

Box 1: Method

When you set up a fixed asset depreciation profile and select Straight line service life in the Method field in the Depreciation profiles page, the assets that have this depreciation profile assigned to them are depreciated based on the total

service life of the asset. This generally is the same depreciation amount in each depreciation period.

Box 2: Convention

Depreciation conventions are used to determine when and how depreciation is calculated for both the year when the fixed asset is acquired and the year when the fixed asset is disposed of.

Example: Mid month (15th of month)

Reference:

https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/straight-line-service-life-depreciation https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/fixed-asset-depreciation-conventions