MB-310 Free Practice Questions — Page 2

Question 5

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 - First Up Consultants is a global engineering and consulting organization based in Atlanta. The organization assists customers with various implementation projects. The organization provides both consulting services and custom software development. First Up Consultants was recently acquired by a Canadian engineering firm that uses Dynamics 365 Finance. The firm requires First Up Consultants to transition to the solution by 2022. First Up Consultants employs consultants that travel globally, which requires extensive expense management capabilities. First Up Consultants offers software as a service (SaaS) products to customers by using monthly and quarterly subscriptions. Current environment. Travel and expense The company is currently in Phase 2 of their Dynamics 365 Finance implementation. • Consultants submit all travel receipts by using inter-office mail to the team admin for processing, but First Up Consultants wants to modernize this experience. • Expense reports are manually approved and signed by the employee’s manager. Current environment. Finance - • First Up Consultants operates on a 4-5-4 calendar. • Accounting for revenue has been difficult with the SaaS offerings. This has led to implementing Dynamics 365 Finance Revenue recognition. • Revenue recognition has been live for 3 months. • Adatum Corporation pays quarterly for use of the First Up Consultants web design application, starting from the day of use. • Fourth Coffee pays monthly for use of the First Up Consultants photograph editing application with a contract starting August 1 and payment starting September 1. • Adventure Works Cycles pays per use of the First Up Consultant video platform. • A blocking rule is set up to prevent a sales order from processing if a customer exceeds a credit limit. • Customer credit is set up at the account level for VanArsdel, Ltd. • Tailspin Toys is owned by Wingtip Toys. The companies have a credit limit of $60.000 and $100,000, respectively. Current environment. Revenue allocation The company reports the following revenue allocation percentages: Current environment. Tax - VAT tax recovery is required for eligible international business trip expenses. Bank reconciliation is manual and performed by using monthly mailed account statements. The company collects sales taxes from the following states: Requirements - Travel and expense - • First Up Consultants requires that employees start using corporate cards for all travel expenses. • All expenses over $50 require a receipt. • Beer cannot be expensed. • Employees may use the corporate card for personal expenses during work travel, but expenses must be categorized correctly. • Client entertainment expenses totaling more than $250 must be audited. • Employees require a mobile expense experience. • Expense report entries must be validated when a transaction line is entered. • Employees require the ability to capture receipts by using a mobile device. • First Up Consultants requires the ability to reimburse employees in their paychecks for expenses incurred on personal cards. Financials - • A virtual thirteenth month is required for year-end transactions. • Each day, a validation file must go to First Up Consultants bank detailing all vendor checks paid. • Except fees, all matched transactions must clear automatically during bank reconciliation. • The accounts payable team must verify expense reports prior to posting. • Only payables are allowed to be posted to a prior period up to seven days into the new period. Issues - • User1 installed the Expense Management Service add-in and implemented the auto-match and create expense from receipt features, but the receipt images do not match the corporate card transactions. • Employee1 submits an expense report for a business trip to Europe, but the report is not visible on the expense tax recovery page. • Employees provided feedback that the system lets them know of an expense report policy violation only after the entire expense report is submitted. • Members of the finance department observe sales orders that posted into a closed period. • The finance team observed that for sales order invoice 1234, the price incorrectly posts to a revenue account when it should be deferring. • Employee2 purchased supplies for a holiday party and needs to be reimbursed. • A customer orders software licenses for the offices in Tennessee and Alabama. • Expense reports for unapproved items are posting. • VanArsdel, Ltd. exceeded its credit limit but the sales order was processed. • Tailspin Toys purchases $70,000 in custom software development. You need to address the employees issue regarding expense report policy violations. Which parameter should you use?

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?

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.

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?

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?

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?

Question 11

A company uses Dynamics 365 Finance for budget control. The company completes the budget control setup and activates the feature. The budget register entries that were posted before turning on budget control are not included in the list of entries. You need to include the entries posted before budget control was activated. What should you do?

Question 12

A company uses the basic budgeting functionality in Dynamics 365 Finance. You need to create budget register entries. What are three possible ways to achieve this goal? Each correct answer presents a complete solution. NOTE: Each correct selection is worth one point.

Question 13

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?

Question 14

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.