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Free MB-310 practice test: 30 questions with answers

30 original questions for Microsoft Dynamics 365 Finance Functional Consultant, drawn from every topic area. Answer each one to see whether you got it right and why. No sign-up.

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MB-310 exam guide: topics, cost and format

All 30 MB-310 questions with answers

The same questions as the test above, grouped by exam topic. Open any question to see the answer and explanation.

General ledger and financial reporting (6 questions)

  1. Question 1

    A finance manager wants to review the trial balance for a period. Which report provides debit and credit totals per account?

    1. AVendor payment proposal
    2. BProduct catalogue
    3. CTrial balance
    4. DShipping label report
    Show answer and explanation
    Correct answer: C

    The trial balance lists account balances with debit and credit totals for a period. Payment proposals, catalogues and shipping labels are unrelated.

  2. Question 2

    A financial statement must be produced with a layout defined by the company's reporting structure, using account ranges and dimensions. Which tool defines this?

    1. AThe product image library linked to each product
    2. BThe purchase order form with header and line delivery terms
    3. CFinancial reporting structures or financial statement designer
    4. DA word processor document template with manually typed account ranges
    Show answer and explanation
    Correct answer: C

    Financial reporting structures and the statement designer define layouts with account ranges and dimensions. Word processors and product libraries do not drive financial statements.

  3. Question 3

    A journal entry is required to record a monthly accrual, and it should reverse automatically at the start of the next month. Which journal feature supports this?

    1. APosting the accrual and reversal manually each month without a setting
    2. BRecurring or auto-reversing journal setting
    3. CDeleting the entry each month
    4. DUsing a single line with no reversal
    Show answer and explanation
    Correct answer: B

    Auto-reversing journals reverse entries automatically, which keeps accruals accurate. Deleting entries, manual monthly reversals without a setting and no reversal break the intended treatment.

  4. Question 4

    A consolidation process must eliminate intercompany transactions between two legal entities before producing a group report. Which feature supports this?

    1. AConsolidation with elimination entries for intercompany accounts
    2. BIgnoring intercompany balances in each entity's ledger
    3. CAdding the two entities' totals without elimination
    4. DDeleting one entity's intercompany records before reporting
    Show answer and explanation
    Correct answer: A

    Consolidation with elimination entries removes intercompany balances from group totals. Simple addition double-counts, ignoring balances misstates results, and deleting an entity removes data.

  5. Question 5

    A budget is being prepared for the next fiscal year, and the finance team wants to load amounts from a spreadsheet and check them against available funds before posting. Which capability supports budget control?

    1. ABudget planning with budget control checks at posting time
    2. BStoring budget numbers in a note field on the budget register header
    3. CIgnoring budgets in procurement so requisitions proceed unchecked
    4. DTyping budgets directly into vendor invoice lines during the posting process
    Show answer and explanation
    Correct answer: A

    Budget planning and budget control check available funds before posting. Invoices, ignored budgets and notes do not provide control.

  6. Question 6

    A finance team needs to verify that each general ledger entry is traceable to a source document. Which feature provides this traceability?

    1. ARemoving document numbers from the posted journal
    2. BSharing several entries under one generic batch number
    3. CVoucher numbers and source document references on transactions
    4. DRecording entries without a source reference field
    Show answer and explanation
    Correct answer: C

    Vouchers and source references make entries traceable for audit. Removing numbers, unreferenced entries and generic numbers break traceability.

Configure and set up finance (6 questions)

  1. Question 7

    A company operates across several legal entities and wants each to keep its own general ledger while sharing a common chart of accounts. Which configuration in Dynamics 365 Finance supports this?

    1. AUse one legal entity for every transaction and separate the subsidiaries' figures with free-text comments
    2. BCreate separate legal entities and share the chart of accounts through the main account structure
    3. CDisable the chart of accounts for subsidiaries so their transactions post to the parent's default ledger
    4. DCreate separate databases for each entity with their own copy of the chart of accounts and a nightly sync job
    Show answer and explanation
    Correct answer: B

    Legal entities keep separate ledgers while the chart of accounts structure can be shared. One entity with comments, separate databases and disabled charts do not meet the requirement.

  2. Question 8

    A consultant must define the fiscal calendar so that periods can be opened and closed for posting. Which setting controls posting per period?

    1. AThe user's language and regional date display preference
    2. BThe product image gallery attached to the product record
    3. CThe company's public website banner and its promo footer
    4. DFiscal calendar periods with ledger period status
    Show answer and explanation
    Correct answer: D

    Fiscal calendar periods and their status control when posting is allowed. Images, language and website banners do not control posting.

  3. Question 9

    A finance team wants to prevent postings to a closed period after month-end. Which feature enforces this?

    1. AClosing the ledger period so that posting is blocked for that period
    2. BDeleting the closed period from the fiscal calendar entirely
    3. CChanging the period name and description in the calendar to reflect the reporting label
    4. DAsking users in writing not to post to closed fiscal periods
    Show answer and explanation
    Correct answer: A

    Closing a period in the ledger blocks postings, enforcing the control. Instructions are not enforcement, deleting periods removes history, and renaming does not block posting.

  4. Question 10

    A chart of accounts must be designed so that financial reports can be filtered by department and cost centre without creating many separate accounts. Which feature supports this?

    1. AHard-coded text in the ledger description field
    2. BSeparate main accounts for every department and cost centre
    3. CA spreadsheet of departments and cost centres
    4. DFinancial dimensions attached to ledger transactions
    Show answer and explanation
    Correct answer: D

    Financial dimensions allow reporting by department and cost centre on a single main account. Separate accounts multiply the chart, spreadsheets are outside the system, and description text is not a reporting structure.

  5. Question 11

    A company wants a control that requires a department code on every journal line. Which configuration applies this rule?

    1. AAn optional department field left open with no validation rules, so journal lines can post without it
    2. BA scheduled reminder email sent to staff each morning asking them to add the department code
    3. CDimension validation rules requiring the department dimension for the account type
    4. DRemoving the department dimension altogether from the chart of accounts so reports use main accounts
    Show answer and explanation
    Correct answer: C

    Dimension validation rules can make a dimension mandatory for posting. Optional fields, reminders and removing dimensions do not enforce the requirement.

  6. Question 12

    A finance administrator needs to ensure that the number sequences for vendor invoices are unique and continuous within each legal entity. Which configuration controls this?

    1. ANumber sequences set up for the vendor invoice journal in each legal entity
    2. BSharing one number sequence across every entity without tight control
    3. CTyping invoice numbers by hand each time from paper copies received by post into the ledger
    4. DUsing the posting date and vendor account as the invoice number
    Show answer and explanation
    Correct answer: A

    Number sequences configured per legal entity provide unique and controlled numbering. Manual numbers, date-only identifiers and uncontrolled shared sequences risk duplicates.

Accounts payable and receivable (6 questions)

  1. Question 13

    A vendor sends an invoice for goods that were received on a purchase order. The company wants the invoice matched to the purchase order and receipt before payment. Which matching policy supports this?

    1. AMatching the gross invoice amount against bank statement lines before payment
    2. BPaying the invoice in advance before receiving the goods
    3. CSkipping matching because the vendor invoice is already trusted
    4. DThree-way matching of purchase order, product receipt, and invoice
    Show answer and explanation
    Correct answer: D

    Three-way matching checks the order, receipt and invoice before payment. Trusting invoices, bank-only matching and paying before receipt bypass controls.

  2. Question 14

    An accounts payable team wants to pay vendors in a batch every Friday with a payment proposal they can review before release. Which feature supports this?

    1. ADeleting vendor invoices from the open list after approval
    2. BPayment proposal and payment journal for scheduled batch payments
    3. CManual payments processed one by one each morning through bank transfer screens
    4. DPaying vendors through a personal account held by a clerk outside the books
    Show answer and explanation
    Correct answer: B

    Payment proposals and payment journals allow reviewable batch payments. Manual one-by-one payments are slow, personal accounts are unauthorized, and deleting invoices removes records.

  3. Question 15

    A customer pays part of an invoice, and the remaining balance must stay open for future collection. Which process records this correctly?

    1. ADeleting the original invoice and creating a new one for the remaining balance in the customer account
    2. BIgnoring the partial payment received and leaving the invoice fully closed in the system
    3. CCustomer payment journal applying the payment to the open invoice, leaving the remainder open
    4. DRecording the customer's payment as a vendor refund and posting it to the accounts payable subledger with the reversal flagged
    Show answer and explanation
    Correct answer: C

    Applying the payment to the invoice leaves the remaining balance open and accurate. Deleting and recreating invoices and ignoring partial payments break the audit trail and balances.

  4. Question 16

    A company wants to offer customers a discount for paying within ten days. Which payment term configuration represents this?

    1. AChanging the customer's name and legal address on record
    2. BPayment terms with a cash discount period and percentage
    3. CA free product sample sent with every payment received
    4. DA manual discount typed by hand on each invoice header after posting
    Show answer and explanation
    Correct answer: B

    Payment terms with a cash discount period and percentage automate the discount rule. Manual discounts per invoice and free products are not the standard term configuration.

  5. Question 17

    An accounts receivable team needs to review overdue customer balances by aging bucket. Which report should they use?

    1. ABank reconciliation statement
    2. BVendor payment proposal
    3. CFixed asset register
    4. DCustomer aging report
    Show answer and explanation
    Correct answer: D

    The customer aging report groups open balances by overdue period. Vendor proposals, fixed asset registers and bank reconciliations serve other purposes.

  6. Question 18

    A company's buyers need to see which vendors are approved to supply each product category. Which master data control supports this?

    1. AA vendor's logo displayed in the product catalogue
    2. BAn unrestricted vendor list open to buyers
    3. CA shared spreadsheet kept on each buyer's desktop
    4. DApproved vendor lists by product or category
    Show answer and explanation
    Correct answer: D

    Approved vendor lists enforce which vendors can supply each category. Desktop spreadsheets, logos and unrestricted lists do not enforce approval.

Fixed assets and cash management (6 questions)

  1. Question 19

    A company buys a machine that will be depreciated over five years using the straight-line method. Which set-up is required in Dynamics 365 Finance?

    1. AA purchase order recorded with no fixed asset record created
    2. BA vendor record for the machine, with its price held on a supplier invoice
    3. CAn expense account charged directly with no depreciation schedule
    4. DA fixed asset with a depreciation profile using straight-line over five years
    Show answer and explanation
    Correct answer: D

    A fixed asset with a straight-line depreciation profile automates the depreciation schedule. A purchase order alone, an expense account without depreciation and a vendor record do not depreciate the asset.

  2. Question 20

    A fixed asset is sold before the end of its depreciation life. Which process records the disposal and the gain or loss?

    1. AAsset disposal or retirement in the fixed asset module, which posts the gain or loss
    2. BDeleting the asset record and its acquisition history from the register
    3. CPosting the sale proceeds to the accumulated depreciation account
    4. DKeeping the asset active in the register and continuing to depreciate it
    Show answer and explanation
    Correct answer: A

    Disposal in the fixed asset module records the sale and posts the gain or loss. Deleting the asset removes history, continuing depreciation misstates the asset, and posting to depreciation is incorrect.

  3. Question 21

    An organization must reconcile its bank statement with the ledger. Which process supports this?

    1. ABank reconciliation that matches statement transactions with ledger postings
    2. BPosting bank transactions to the ledger without matching statement lines
    3. CIgnoring the bank statement and relying on the cash account balance in the ledger
    4. DRecording the bank balance in an offline spreadsheet kept outside the ledger each month-end
    Show answer and explanation
    Correct answer: A

    Bank reconciliation matches bank transactions with ledger entries to identify differences. Ignoring statements, spreadsheets and unmatched postings do not reconcile the accounts.

  4. Question 22

    A company receives payments through several bank accounts and wants to know which account each payment was deposited into. Which setup supports this?

    1. AWriting the receiving bank account name in a note attached to the receipt for audit
    2. BLeaving the bank account field blank on payment journal lines
    3. CBank accounts configured in the system and linked to payment journals
    4. DA single shared bank account for receipts with no origin
    Show answer and explanation
    Correct answer: C

    Configured bank accounts linked to payment journals track deposits by account. A single untracked account, notes and ignored fields lose this information.

  5. Question 23

    A company pays a vendor by electronic funds transfer, and the bank requires a specific payment file format. Which feature supports this?

    1. APayment file format configuration and export for the bank
    2. BTransferring funds manually at a branch through a teller window
    3. CSending the payment file by email as unformatted plain text to the vendor
    4. DPrinting a cheque for each vendor payment and mailing it to the vendor
    Show answer and explanation
    Correct answer: A

    Payment format configurations generate files that banks accept for electronic payments. Printed cheques, plain-text emails and manual teller transfers do not meet the bank's format requirement.

  6. Question 24

    A company wants to capture the cost of an asset that was acquired in a foreign currency and report it in the local currency. Which feature handles this?

    1. AConverting the asset record into a released product item in the inventory module for resale
    2. BCurrency exchange rates applied at transaction date with reporting currency settings
    3. CTyping the local currency amount directly into the journal without a rate or conversion step
    4. DIgnoring the foreign currency code on the invoice and posting the amount as local currency unchanged
    Show answer and explanation
    Correct answer: B

    Exchange rates and reporting currency settings convert foreign transactions correctly. Typing local amounts without rates and ignoring currency create misstatements.

Cost and project accounting (6 questions)

  1. Question 25

    A company wants to allocate indirect costs to projects based on hours worked. Which allocation method is used?

    1. ASplitting costs equally without any basis
    2. BEntering the allocation manually for each project each month
    3. CAllocation rules based on a driver such as hours worked
    4. DIgnoring the indirect costs
    Show answer and explanation
    Correct answer: C

    Allocation rules with a driver like hours allocate costs in proportion to usage. Equal splits without basis, manual monthly entries and ignoring costs are less accurate or incomplete.

  2. Question 26

    A project team needs to track revenue, cost, and budget per project. Which Dynamics 365 Finance capability provides this?

    1. AThe company calendar used to schedule period-end close tasks and staff reminders across departments
    2. BProject management and accounting with project budgets and transactions by project
    3. CA product catalogue listing item codes, units of measure and sales prices
    4. DThe vendor master file with supplier contact details, payment terms and bank accounts on file
    Show answer and explanation
    Correct answer: B

    Project management and accounting tracks costs, revenue and budgets by project. Product catalogues, vendor masters and calendars do not track project financials.

  3. Question 27

    A company wants to track the cost of each cost centre against its budget in real time. Which configuration supports this?

    1. AUsing one shared cost centre for every posting in the legal entity
    2. BCost accounting and budget control with budget codes by cost centre
    3. CA monthly printed report compiled by hand after period end
    4. DLeaving cost centres blank on transaction lines during posting
    Show answer and explanation
    Correct answer: B

    Budget control by cost centre checks spending against the budget in real time. Manual monthly reports, ignored centres and a single centre lose the granularity needed.

  4. Question 28

    An internal service department charges its costs to other departments based on a fixed percentage. Which accounting concept describes this?

    1. AExternal invoicing of customers for sales
    2. BDepreciation of capital assets
    3. CInternal cost allocation or chargeback
    4. DPayment reconciliation against open invoices
    Show answer and explanation
    Correct answer: C

    Internal allocation or chargeback moves costs between departments based on rules. External invoicing, depreciation and reconciliation are different processes.

  5. Question 29

    A project manager wants to see the expected cost of a project compared with actual cost to date. Which concept describes this?

    1. AProject budget versus actual cost analysis
    2. BVendor payment terms and due date schedules by account
    3. CBank reconciliation of statement lines
    4. DCustomer discount rate and credit limit exposure
    Show answer and explanation
    Correct answer: A

    Project budget versus actual analysis shows variance on a project. Vendor terms, customer discounts and bank reconciliation do not compare project costs.

  6. Question 30

    An organization sets a cost price for internal items used by production, to be applied before actual costs are known. Which costing method provides this?

    1. AStandard costing
    2. BPrice per invoice after delivery
    3. CFirst-in, first-out costing only
    4. DNo costing method
    Show answer and explanation
    Correct answer: A

    Standard costing sets predetermined costs for planning and variance analysis. FIFO is a valuation method for actual costs, and invoice pricing is retrospective.