Free Microsoft MB-310 practice questions

Question 1

Show the case study this question is based on

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.

You are configuring the year-end setup in Dynamics 365 Finance.

You need to configure the year-end setup to meet the following requirements:

• The accounting adjustments that are received in the first quarter must be able to be posted into the previous year's Period 13.

• The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions.

• All dimensions from profit and loss must carry over into the retained earnings.

• All future and previous periods must have an On Hold status.

Solution:

• Configure General ledger parameters.

• Set the Delete close of year transactions option to Yes.

• Set the Create closing transactions during transfer option to Yes.

• Set the Fiscal year status to permanently closed option to No.

• Define the Year-end close template.

• Designate a retained earnings main account for each legal entity.

• Set the Financial dimensions will be used on the Opening transactions option to No.

• Set the Transfer profit and loss dimensions option to Close All.

• Set all prior and future Ledger periods to a status of On Hold.

Does the solution meet the goal?

1. Yes
2. No

Show answer and explanation

Correct answer: A. Yes

This solution correctly addresses all four requirements. Setting Delete close of year transactions to Yes allows the fiscal year closing to be run again with only the most recent closing entry remaining. Setting Create closing transactions during transfer to Yes enables the posting of adjustments to Period 13. Setting Fiscal year status to permanently closed to No keeps the period open for adjustments. The Year-end close template configuration with Transfer profit and loss dimensions set to Close All ensures all P&L dimensions carry over to retained earnings. Setting all prior and future periods to On Hold status satisfies the final requirement.

Why the other options are wrong

• B. While this could be a valid solution, there is at least one configuration error that prevents it from meeting all goals as stated.

Question 2

Show the case study this question is based on

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.

You are configuring the year-end setup in Dynamics 365 Finance.

You need to configure the year-end setup to meet the following requirements:

• The accounting adjustments that are received in the first quarter must be able to be posted into the previous year's Period 13.

• The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions.

• All dimensions from profit and loss must carry over into the retained earnings.

• All future and previous periods must have an On Hold status.

Solution:

• Configure General ledger parameters.

• Set the Delete close of year transactions option to Yes.

• Set the Create closing transactions during transfer option to Yes.

• Set the Fiscal year status to permanently closed option to Yes.

• Define the Year-end close template.

• Designate a retained earnings main account for each legal entity.

• Set the Financial dimensions will be used on the Opening transactions option to Yes.

• Set the Transfer profit and loss dimensions to Close All.

• Set all prior and future Ledger periods to a status of On Hold.

Does the solution meet the goal?

1. Yes
2. No

Show answer and explanation

Correct answer: B. No

This solution fails to meet the requirements. Setting Fiscal year status to permanently closed to Yes prevents the Period 13 from accepting adjustments in the first quarter, violating the first requirement. Additionally, setting Financial dimensions will be used on the Opening transactions to Yes contradicts the requirement that dimensions from profit and loss carry over into retained earnings during the close process. The Create closing transactions during transfer and Delete close of year transactions settings alone cannot compensate for these critical misconfigurations.

Why the other options are wrong

• A. This solution contains configuration errors that prevent it from fully meeting the stated requirements.

Question 3

Show the case study this question is based on

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.

You are configuring the year-end setup in Dynamics 365 Finance.

You need to configure the year-end setup to meet the following requirements:

• The accounting adjustments that are received in the first quarter must be able to be posted into the previous year's Period 13.

• The fiscal year closing can be run again, but only the most recent closing entry will remain in the transactions.

• All dimensions from profit and loss must carry over into the retained earnings.

• All future and previous periods must have an On Hold status.

Solution:

• Configure General ledger parameters.

• Set the Delete close of year transactions option to No.

• Set the Create closing transactions during transfer option to No.

• Set the Fiscal year status to permanently closed option to No.

• Define the Year-end close template.

• Designate a retained earnings main account for each legal entity.

• Set the Financial dimensions will be used on the Opening transactions option to No.

• Set the Transfer profit and loss dimensions to Close All.

• Set all prior and future Ledger periods to a status of On Hold.

Does the solution meet the goal?

1. Yes
2. No

Show answer and explanation

Correct answer: B. No

This solution fails to meet the requirements. Setting Delete close of year transactions to No means closing entries cannot be deleted and rerun; only the most recent closing entry remaining cannot be guaranteed. Setting Create closing transactions during transfer to No prevents the system from creating opening balances for the next period, which is necessary for the overall close process to function properly. Without these settings enabled, the year-end closing cannot be run again as required.

Why the other options are wrong

• A. This solution contains critical configuration errors that prevent it from meeting the stated requirements.

Question 4

A company is preparing to complete a year-end close process.

You need to configure the Dynamics 365 Finance general ledger module.

Which three configurations actions should you perform? Each correct answer presents part of the solution.

NOTE: Each correct selection is worth one point.

1. Configure the Fiscal year close parameters
2. Configure the ledger calendar for the new fiscal year
3. Set up the year end close template
4. Validate the main account type
5. Create the next fiscal year

Show answer and explanation

Correct answer: A, C, E

A. Configure the Fiscal year close parameters C. Set up the year end close template E. Create the next fiscal year The three essential configuration actions for year-end close preparation are: Configure the Fiscal year close parameters to establish the rules governing the close process, Set up the year end close template to define how closing entries will be generated and dimensions handled, and Create the next fiscal year to prepare the system for transactions in the new period. Configuring the ledger calendar and validating main account types are important but not among the primary configuration requirements for the close process itself.

Why the other options are wrong

• B. The ledger calendar is typically configured during initial setup rather than as part of year-end close preparation.
• D. Validating main account types is a prerequisite to close setup but not a specific year- end close configuration action.

Question 5

A client has unique accounting needs that sometimes require posting definitions.

You need to implement posting definitions.

In which situation should you implement posting definitions?

1. when financial dimensions need to default from the vendor record onto an invoice
2. when only certain dimensions are allowed to post with certain main account combinations
3. when creating multiple balanced ledger entries based on transaction types or accounts
4. when the system needs to automatically post a transaction to the accounts receivable account on invoice posting

Show answer and explanation

Correct answer: C. when creating multiple balanced ledger entries based on transaction types or accounts

on transaction types or accounts Posting definitions are specifically designed to create multiple balanced ledger entries based on transaction types or accounts. This feature allows organizations to automatically split transactions across multiple accounts according to defined rules, making it ideal for complex accounting scenarios requiring multiple correlated entries. The other options describe functionality that is handled by defaults, account combinations, or automatic posting rules, not posting definitions.

Why the other options are wrong

• A. Financial dimension defaults from vendor records are handled through vendor setup and account structures, not posting definitions.
• B. Restricting dimension posting with specific account combinations is managed through account structures and validation rules.
• D. Automatic posting to accounts receivable is handled by system configuration and posting profiles, not posting definitions.

Question 6

An organization is setting up a cost accounting.

You need to set up fiscal calendars for Dynamics 365 Finance.

What are three uses for fiscal calendars? Each correct answer presents a complete solution.

NOTE: Each correct selection is worth one point.

1. standard work hours
2. financial transactions
3. fixed asset depreciation
4. budget cycles
5. shift work hours

Show answer and explanation

Correct answer: B, C, D

B. financial transactions C. fixed asset depreciation D. budget cycles Fiscal calendars in Dynamics 365 Finance are used for financial transactions to establish the posting periods, for budget cycles to define when budgets apply and are reviewed, and for fixed asset depreciation to determine the depreciation periods. These three uses encompass the primary business processes that require fiscal period definition. Standard work hours and shift work hours are HR-related functions not directly tied to fiscal calendar configuration.

Why the other options are wrong

• A. Standard work hours are configured in Human Resources, not through fiscal calendars.
• E. Shift work hours are HR payroll functions, not dependent on fiscal calendar setup.

Question 7

You are configuring automatic bank reconciliation functionality for a company that has multiple bank accounts. The company wants to import their bank statements.

You need to import electronic bank statements to reconcile the bank accounts.

Which three actions can you perform? Each correct answer presents a complete solution.

NOTE: Each correct selection is worth one point.

1. Select all the bank accounts for the bank statement files, and then upload all files
2. Select Account reconciliation on the bank account form
3. Import bank statements from the Data management workspace
4. Navigate to Import statement on the Bank Statements page of Cash and Bank Management
5. Select Import statement for multiple bank accounts in all legal entities, and then upload a zip file

Show answer and explanation

Correct answer: C, D, E

C. Import bank statements from the Data management workspace D. Navigate to Import statement on the Bank Statements page of Cash and Bank Management E. Select Import statement for multiple bank accounts in all legal entities, and then upload a zip file The three correct actions for importing electronic bank statements are: Import bank statements from the Data management workspace, which is the primary import location for bulk data operations; Navigate to Import statement on the Bank Statements page of Cash and Bank Management for direct bank statement import; and Select Import statement for multiple bank accounts in all legal entities with the ability to upload a zip file for batch processing. These three methods provide the standard import pathways for bank statement reconciliation in Dynamics 365 Finance.

Why the other options are wrong

• A. Uploading all files at once for all bank accounts is not the recommended approach; files should be processed by individual account or in organized batches.
• B. Selecting Account reconciliation on the bank account form is a configuration option, not an action that imports statements.

Question 8

A company plans to create a new allocation rule for electric utilities expenses.

The allocation rule must meet the following requirements:

• Distribute overhead utility expense to each department.

• Define how and in what proportion the source amounts must be distributed on various destination lines.

You need to configure the allocation rule.

Which allocation method should you use?

1. Distribute the source document amount equally
2. Fixed weight
3. Equally
4. Basis

Show answer and explanation

Correct answer: D. Basis

The Basis allocation method is the appropriate choice for distributing utility expenses to departments based on defined proportions. This method allows configuration of how source amounts are distributed across destination lines according to specified allocation bases such as departmental square footage, headcount, or other measurable criteria. The Basis method provides the flexibility needed to define custom proportions for each department rather than using fixed equal distributions.

Why the other options are wrong

• A. Distributing equally does not address the requirement to define specific proportions for different departments.
• B. Fixed weight allocation is too restrictive and does not provide the flexibility needed for utility cost distribution across varying departments.
• C. Equal distribution ignores the requirement that overhead must be distributed in varying proportions to different departments based on departmental characteristics.

Question 9

A company provides employee life insurance to all full-time employees. Employee life insurance policies are paid twice a year to the insurance company.

Transactions for current employees must be recognized in the general ledger twice a month with an employee's pay. Transactions for new employees must be recognized in the general ledger based upon the employee's first pay date.

You need to configure accrual schemes for the new fiscal year.

Which two configurations should you use? Each correct answer presents part of the solution.

NOTE: Each correct selection is worth one point.

1. For new employees, use a Credit accrual scheme. In the ledger accrual, set the offset to the first day of the fiscal year.
2. For current employees, use a Credit accrual scheme. In the ledger accrual, set the offset to the employee's first pay date.
3. For new employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the employee's first pay date.
4. For current employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the first day of the fiscal year.

Show answer and explanation

Correct answer: C, D

C. For new employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the employee's first pay date. D. For current employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the first day of the fiscal year. For new employees, a Debit accrual scheme with offset to the employee's first pay date ensures transactions are recognized starting from when the employee begins receiving pay, matching the requirement that new employee transactions be recognized based on their first pay date. For current employees, a Debit accrual scheme with offset to the first day of the fiscal year ensures transactions are recognized twice monthly throughout the fiscal year for all existing employees, matching the requirement for regular bimonthly recognition with employee pay.

Why the other options are wrong

• A. Using a Credit accrual scheme for new employees is incorrect; Debit schemes are appropriate for accruing expenses like insurance premiums.
• B. Setting the offset to the employee's first pay date for current employees is incorrect; current employees need recognition from the start of the fiscal year, not tied to individual hire dates.

Question 10

An organization uses Dynamics 365 Finance.

Several posted journal entries contain invalid main account and dimension combinations. This leads to incorrect financial reporting.

You need to prevent these invalid combinations.

What should you do?

1. Configure the account structure to specify which financial dimensions are valid for which main accounts.
2. Train users to select the Validate button in the current journal configuration so that the correct account and dimension combination is used.
3. Configure financial dimension sets to limit which financial dimensions are valid for which main accounts.
4. Associate the correct main accounts to that financial dimension on the financial dimension setup form.

Show answer and explanation

Correct answer: A. Configure the account structure to specify which financial dimensions are valid for which main accounts.

financial dimensions are valid for which main accounts. Configuring the account structure allows you to define rules that specify which financial dimensions are valid for which main accounts at the system level. This prevents invalid combinations from being entered in the first place by enforcing validation rules when users create journal entries, ensuring data integrity and accurate financial reporting.

Why the other options are wrong

• B. Training users to validate is a procedural workaround, not a system-level prevention mechanism, and does not prevent errors from being posted.
• C. Financial dimension sets are used for filtering and reporting, not for controlling which dimensions are valid with specific main accounts.
• D. Associating main accounts to financial dimensions on the dimension setup form does not restrict invalid combinations; account structure configuration is the proper control.