MB-310 Free Practice Questions — Page 2

Question 12

DRAG DROP - Case study - This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided. To answer the questions included in a case study, you will need to reference information that is provided in the case study. Case studies might contain exhibits and other resources that provide more information about the scenario that is described in the case study. Each question is independent of the other questions in this case study. At the end of this case study, a review screen will appear. This screen allows you to review your answers and to make changes before you move to the next section of the exam. After you begin a new section, you cannot return to this section. To start the case study - To display the first question in this case study, click the Next button. Use the buttons in the left pane to explore the content of the case study before you answer the questions. Clicking these buttons displays information such as business requirements, existing environment, and problem statements. If the case study has an All Information tab, note that the information displayed is identical to the information displayed on the subsequent tabs. When you are ready to answer a question, click the Question button to return to the question. Background - Adventure Works Cycles is a North American-based company that sells and fixes bicycles. The company is modernizing its business processes by implementing Dynamics 365 Finance. The company recently expanded its business into bicycle leasing. The leasing business is expanding into Canada due to high demand. Adventure Works Cycles has one legal entity, two cost centers, and three divisions within each cost center. The company also has a centralized budgeting process to the lowest level. The operating currency of the legal entity is the US dollar (USD). Adventure Works Cycles operates on a 4-5-4 calendar, which is used to make sure that the sales are evenly distributed across all months, including weekends. Current Environment - • Adventure Works Cycles tracks its international vendors in a separate payable account from its domestic vendors. • Only bicycle frame inventory is configured with a separate item model group that requires registration. • A thirteenth month is required for year-end transactions. • Only members from the accounts payable team are able to post transactions to a prior period after the period is closed to the company. • Fourth Coffee is a Canadian-based coffee chain whose operating currency is the Canadian dollar (CAD). Fourth Coffee entered into a lease agreement for 150 branded bicycles totaling CAD75,000. • Adventure Works Cycles frequently receives invoices in foreign currencies. Requirements - • Three-way matching is required only on competition bicycles priced over USD3,000 that are purchased from Fabrikam, Inc., in Europe. • Domestic customers and international customers must be managed in the following ways: o Domestic customer receivables must post to account 1200. o International customer receivables must post to account 1201. o Domestic customers must have a payment term of net 30. o International customers must have a payment term of net 15. o Domestic customer revenue must post to account 4000. o International customer revenue must post to account 4001. • Adventure Works Cycles must be able to use the cash flow forecasting capability in Finance. • The system must enable tracking and charging interest for customer accounts that are not current. • Automatic charges must be configured on vendor invoices for bicycle tires. The cost must be added to each item on the vendor invoice. • Adventure Works Cycles must be able to terminate leases for bicycles at any time. • Adventure Works Cycles must be able to closely track its budget by enforcing the budget at the cost center level. • The system must run Vendor aging reports by listing the transactions that are included in the reports' balance, unsettled payments, and aging period descriptions. Issues - • The accounts payable clerk processes an invoice for bicycle frames and a partial invoice for helmets. The clerk observes that the quantities on the vendor invoices are incorrect. The invoices require the correct line quantity selections so that the invoices process accurately. • The accounts payable clerk processes an invoice and observes that the product receipt quantity match for bicycle seat posts ordered from Fabrikam, Inc., is blank. However, the invoice passes validation. • The accounts payable manager observes that a sales order is posted to the prior period that is closed. • During foreign currency revaluation of the Accounts payable subledger, posting occurred only if the result was a loss. • On a vendor invoice for bicycle tires, the automatic charge is charged as an expense. • Due to a breach of contract, a member of the finance team needs to terminate a bicycle lease. However, the Termination proposal button is unavailable. • The accounts payable clerk is unable to review payments that have not been settled on the Vendor aging report. You need to re-run foreign currency revaluation and correct the issue. How should you run the revaluation to get the expected result? To answer, move the appropriate methods to the correct scenarios. You may use each method once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point.

Question 13

DRAG DROP - A company uses Dynamics 365 Finance. The company plans to use batch transfers to improve business processes. The company has the following requirements based on different scenarios it has experienced: • Resolve conflicts in the general ledger that are due to frequent transfers. • Implement near real-time transfers from the subledger to the general ledger. You need to configure transfer settings for batch transfers to meet the requirements. Which configurations should you recommend for each scenario? To answer, move the appropriate configurations to the correct scenarios. You may use each configuration once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point.

Question 14

You author a budget plan template in Microsoft Word as part of the budget planning process. You attempt to upload the document to Dynamics 365 Finance and the upload fails. You need to include an entity in the budget plan template. Which entity should you include?

Question 15

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 an accrual scheme, and use the general journal with the accrual scheme to recognize the unearned revenue. Does the solution meet the goal?

Question 16

DRAG DROP - A company uses Dynamics 365 Finance for its recurring contract billing. The company bills its customers a one-time fee when customers fist set up services. The company bills customers a minimum charge plus actual usage based on tiered pricing. The company configures service items for fees, minimum charges, and usage with the sales price in released product along with the trade agreement for the pricing. The company must be able to manage pricing through trade agreements and released product sales price. You need to configure the billing schedule line for each service item. How should you complete the setup? To answer, move the appropriate pricing methods to the correct billing schedule lines. You may use each pricing method once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point.

Question 17

A company uses Dynamics 365 Finance for accounts receivable. The company plans to offer the following cash discounts to customers: • Ten percent discount when the amount is paid within 7 days. • Five percent discount when the amount is paid within 14 days. • Two percent discount when the amount is paid within 21 days. You configure the cash discount codes 7D10%, 14D5%, and 21D2%, You need to assign the cash discounts in the Customer account setup. Which three actions should you perform? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point.

Question 18

DRAG DROP - A company uses Dynamics 365 Finance. The company requires prepayment for a purchase order. You need to create a prepayment that is associated with the purchase order. Which four 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.

Question 19

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 realized gains posting profiles for a specific main account and unrealized gains for all main accounts. • Configure realized and unrealized gains or losses for all vendors. • Configure unrealized and realized gains or losses posting profiles for all customers. • Configure realized and unrealized gains or losses posting profiles for each bank account. Does the solution meet the goal?

Question 20

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 posting profiles for unrealized gains and loses for all main accounts. • Configure realized gain accounts for each currency • Configure unrealized gains and losses for each vendor account. • Set up a realized gains and losses posting profile for each customer group an bank account. Does the solution meet the goal?

Question 21

You manage the ledger settlement process for a company in Dynamics 365 Finance. The company requires an improved settlement process. You enable the Awareness between ledger settlement and year-end close feature to include only unsettled ledger transactions in the opening balance during the year-end process. The company must be able to settle transactions and handle realized gains and losses for foreign currency differences without any manual intervention. You need to configure the system to meet the requirements. What should you do?