This is the free Microsoft MB-310 practice question bank —
180 of 353 total questions, each with a full explanation, free to
read with no signup required. Updated 2026-04-24.
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: In Dynamics 365 Finance, a Planned cost costing version is used to calculate and review simulated or future cost changes for manufactured items without updating or impacting the currently active costs. This allows analysis and comparison before activating costs. Other options either apply active costing (standard or actual) or are unrelated to cost version simulation.
Question 2
HOTSPOT
-
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: Enable automatic settlement.
Enable posting of realized gains or losses.
Explanation: Automatic settlement ensures ledger settlements are processed efficiently, and enabling posting of realized gains or losses allows Dynamics 365 Finance to automatically calculate and post foreign currency realized gains and losses when settlement amounts differ from the original accounting currency amounts.
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: C
Explanation: In Dynamics 365 Finance deferrals, the system only evaluates the relations type selected on the deferred item. Even if category relations are configured, deferral will not be triggered unless the Account relation is set accordingly (for example, to Category). Since category relations already exist but transaction lines are not deferred, the missing step is selecting the Account relation for all items so those category relations are applied.
Question 5
HOTSPOT
-
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 must be Usage. The pricing applies a single rate to the entire consumption based on whether usage is below or above the 10,000-gallon threshold, which corresponds to a Flat tier pricing method.
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 correct transaction type is **Disposal - sale**. This records the sale proceeds and removes the asset from the fixed assets register. **Disposal - scrap** is used only when an asset is discarded with no sale value, while extraordinary depreciation and acquisition are not applicable.
Question 7
HOTSPOT
-
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: Consolidate with import.
Consolidate online with ownership percentage.
Perform financial reporting.
Explanation: Import consolidation supports subsidiaries from different systems and currencies. Partially owned subsidiaries require ownership percentages during online consolidation. Reporting by business unit or organizational hierarchy is handled through Financial reporting.
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: To enable budget control to monitor and compare actual expenditures against budgeted amounts, the system must know which budget figures apply to each control period. Assigning budget models to budget cycle time spans links the budgeted amounts to the defined time intervals, making them available for budget control calculations. The other options relate to enforcement or calculation behavior, not to establishing the core link between budgets and budget 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 on a journal name control who can post or edit journals, not whether the journal name is available for selection. To make a journal available only to a specific user group, the journal must be set as Private for a user group. Therefore, configuring posting restrictions 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 goal is to recognize unearned revenue for an extended warranty over time. Posting the project fee to an unearned revenue account ensures it is not recognized immediately, and using a deferral template with the deferral process creates a schedule to recognize revenue systematically over the service period. This configuration meets the requirement.
Question 11
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 operates in multiple currencies. The company is setting up currency revaluation posting profiles for General ledger, Accounts payable, Bank and Accounts receivable.
The company requires currency revaluation posting profiles to post unrealized and realized gains or losses to the correct accounts for applicable currencies.
You need to configure the currency revaluation posting profiles.
Solution:
• Configure currency revaluation posting profiles for General ledger for each applicable main account for each currency.
• Select unrealized gain and loss accounts for all currencies.
• Configure realized gains and losses posting for all vendors.
• Configure realized gains and losses posting for each customer group.
Does the solution meet the goal?
A. Yes
B. No
Show Answer
Correct Answer: B
Explanation: The solution does not fully or correctly meet the requirement. Currency revaluation posting profiles are configured per module (General ledger, Accounts payable, Accounts receivable, and Bank) mainly for unrealized gains and losses. Realized gains and losses for vendors and customers are not configured via currency revaluation posting profiles but through AP and AR posting parameters (typically by vendor/customer groups). In addition, the solution omits proper bank configuration and mixes configuration scopes, so it does not meet the stated goal.
$19
Get all 353 questions with detailed answers and explanations
Instant download HTML + PDF delivered the moment payment clears.
Secure Stripe checkout we never see or store your card details.
7-day refund if files are defective see our refund policy.
