This is the free Microsoft MB-310 practice question bank —
180 of 356 total questions, each with a full explanation, free to
read with no signup required. Updated 2026-08-06.
Every answer is verified against official Microsoft documentation —
see our methodology.
Question 1
A company plans to implement financial management with Dynamics 365 Finance.
The company must be able to view cost changes for manufactured items without affecting the current active costs.
You need to configure the costing versions.
Which type of costing version should you configure?
A. Indirect cost allocation
B. Planned costs
C. Standard costs
D. Actual cost tracking
Show Answer
Correct Answer: B
Explanation: A planned-cost costing version is used to simulate and analyze cost changes for manufactured items without affecting the currently active costs. It allows cost calculations and comparisons before any activation, whereas standard cost versions are for active standard costs, actual cost tracking records actual costs, and indirect cost allocation is unrelated to costing version simulation.
Question 2
HOTSPOT
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A company uses Dynamics 365 Finance for its ledger settlement process. The company uses multiple currencies for business.
The company requires an automatic, efficient way to process gains and losses to settle accounts, including when the accounting currency amounts differ from the initial recording.
You need to configure the system to post foreign currency realized gains and losses for ledger settlements.
What should you do? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Set up gains and losses for ledger settlements: Configure posting profiles for gains and losses.
Account for the realized gain or loss on the foreign currency payable: Enable posting of realized gains or losses.
Explanation: Dynamics 365 Finance posts realized foreign currency gains/losses during settlement when realized gain/loss posting is enabled and the related gain/loss posting accounts are configured.
Question 3
DRAG DROP
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A company uses Dynamics 365 Finance to manage fixed assets.
The company requires partial retirement of a fixed asset by using the split fixed asset functionality.
You need to process the fixed asset split.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
Show Answer
Correct Answer: 1. Create a new fixed asset.
2. Split the fixed asset by specifying the new asset number, book, split percentage, transaction date, and journal name.
3. Post the generated journal transaction.
Explanation: In Dynamics 365 Finance, the target asset must exist before performing the split. The split process generates a journal that must then be posted. Deleting the original acquisition record is not part of the split process.
Question 4
A company is using Dynamics 365 Finance.
The company sets up items to be deferred by default by sales category for sales orders by completing the following steps:
1. Select items to defer by default.
2. Set up the deferred items for sales order type transactions.
3. Set up category relations for all deferred items.
Transaction lines where the items are entered are not being deferred.
You need to update the configuration to ensure that the transaction lines are deferred as required.
What should you do?
A. Set up deferred items for Purchasing transaction types.
B. Select the default accounts and templates.
C. Select the Account relation for all items.
D. Set up item relations for all deferred items.
Show Answer
Correct Answer: B
Explanation: In Dynamics 365 Finance, after configuring items to be deferred by default and defining category relations, you must also configure the default deferral accounts and templates. Microsoft Learn states that if the default accounts and templates are not selected on the Deferral defaults page, transaction lines where those items are entered are not deferred.
Sources:
https://learn.microsoft.com/en-us/dynamics365/finance/accounts-receivable/sb-deferrals
https://www.secexams.com/exams/Microsoft/mb-310/view/39
Question 5
HOTSPOT
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A utility company uses Dynamics 365 Finance for its recurring contract billing.
The company bills its customers quarterly for water and sewer services based on water meter readings. Pricing depends on usage. The cost is $10 per 1,000 gallons if the usage is under 10,000 gallons and $15 per 1,000 gallons if the usage exceeds 10,000 gallons.
You need to configure the billing schedule group.
How should you complete the setup? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Explanation: Billing is based on meter readings, so the item type is Usage. The pricing states one rate applies when usage is under the threshold and a different rate applies when usage exceeds the threshold, which matches flat-tier pricing where the applicable tier rate is applied based on the total usage level.
Question 6
A company is using Microsoft Dynamics 365 Finance. The company sells one of its assets.
You need to dispose of this asset in the system.
Which transaction type should you use?
A. Disposal - sale
B. Extraordinary depreciation
C. Disposal - scrap
D. Acquisition
Show Answer
Correct Answer: A
Explanation: When an asset is sold in Microsoft Dynamics 365 Finance, the appropriate fixed asset transaction type is 'Disposal - sale'. 'Disposal - scrap' is used when the asset is discarded without sale proceeds, 'Extraordinary depreciation' records exceptional depreciation rather than disposal, and 'Acquisition' is for adding an asset.
Question 7
HOTSPOT
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You manage the consolidation an elimination process in Dynamics 365 Finance for a company.
The company must consolidate financial data from multiple subsidiaries that use different currencies and systems. The company must ensure that intercompany eliminations are correctly processed.
You need to setup and run the consolidation and elimination process in Finance.
How should you complete the configuration? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Show Answer
Correct Answer: Consolidation with multiple subsidiaries, currencies, and systems → Consolidate with import.
Consolidation with partially owned subsidiary → Perform financial reporting with ownership percentage.
Reporting that displays consolidations by business unit or organizational hierarchies → Perform financial reporting.
Explanation: Import-based consolidation supports data from multiple systems and currencies. Ownership percentage handling for partial ownership is provided in Financial reporting. Financial reporting also supports reporting by business unit and organizational hierarchies.
Question 8
A company is setting up a budget control system to improve financial management. The company completes the following initial steps:
• Defined financial dimensions
• Set default time intervals
• Configured basic budgeting parameters
The company requires the budget control functionality to monitor and compare the actual expenditures to the budgeted amounts.
You need to configure the budget control configuration linked to the budgeted amount so that the system can effectively monitor and compare actual expenditures to budgeted amounts.
What should you do next?
A. Specify user groups with permissions to exceed the budget.
B. Define the calculation formula for budget funds available, including draft documents.
C. Assign budget models to the budget cycle time spans.
Show Answer
Correct Answer: C
Explanation: After defining financial dimensions, default time intervals, and basic budgeting parameters, budget control must be linked to actual budget data. Assigning budget models to budget cycle time spans associates the budget model containing budgeted amounts with the relevant budget periods, enabling budget control to compare actual expenditures against budgeted amounts. Specifying budget funds available formulas or user over-budget permissions are later configuration details and do not establish the budget model used for control.
Question 9
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A company uses Dynamics 365 Finance.
The customer payment journal must only be available for selection by the accounts receivable user group.
You need to configure the accounts receivable journal name to meet the requirement.
Solution: Configure the posting restriction.
Does the solution meet the goal?
A. Yes
B. No
Show Answer
Correct Answer: B
Explanation: Posting restrictions control who can post or work with journals under specific restrictions, but they do not make a journal name available only to a particular user group for selection. To make a journal available only to the accounts receivable user group, configure the journal as private for the appropriate user group (Blocking > Private for user group). Therefore, the proposed solution does not meet the requirement.
Question 10
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A company uses Dynamics 365 Finance. The company sells extended warranty services that use a project fee journal.
You need to recognize unearned revenue for the extended warranty service over time.
Solution: Configure the project ledger posting for the fee category to post to the unearned revenue account, set up a deferral template, configure the deferral default for the general journal, and use the general journal with the deferral process to create a deferral schedule and recognize the unearned revenue from it.
Does the solution meet the goal?
A. Yes
B. No
Show Answer
Correct Answer: A
Explanation: The solution meets the goal. Posting the project fee to an unearned revenue (liability) account through the project ledger posting and then using a deferral template with the general journal deferral process creates a deferral schedule that recognizes the revenue over time, which is the intended approach for extended warranty revenue recognition.
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