Exam MB-310 topic 5 question 17 discussion

Actual exam question from Microsoft's MB-310

Question #: 17
Topic #: 5

Your company uses Dynamics 365 Finance.
All fixed assets are categorized by asset type. For example, office furniture is sequentially numbered, has the same service life, and uses the same depreciation deduction calculation.
You need to configure the system.
Which two parameters should you set up? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

A. depreciation convention
B. derived book
C. depreciation profile
D. fixed asset group

Show Suggested Answer

Suggested Answer: AD 🗳️
Depreciation conventions are used to determine when and how depreciation is calculated for both the year when the fixed asset is acquired and the year when the fixed asset is disposed of.
Depreciation conventions can be assigned to the setup for a fixed asset group book.
Reference:
https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/fixed-asset-depreciation-conventions

by AliK1i at Oct. 19, 2022, 9:29 p.m.

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globeearth

1 month, 2 weeks ago

Selected Answer: CD

C. Depreciation profile: is calculated for fixed assets, including the method (e.g., straight-line, reducing balance) and the frequency of depreciation (e.g., monthly, yearly).. This ensures consistent depreciation calculations for all assets of that type. D. Fixed asset group: is used to categorize fixed assets with similar characteristics, such as asset type, service life, and numbering sequence.

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Milliongiz

6 months, 3 weeks ago

A. Depreciation Convention: While the depreciation convention is important for determining when and how depreciation starts within the fiscal period, it is not specific to categorizing assets by type or ensuring they have the same service life and depreciation method. B. Derived Book: Derived books are used to create additional depreciation books that derive their values from the primary depreciation book. This is useful for reporting purposes but does not directly address the need to categorize assets by type, ensure sequential numbering, or standardize service life and depreciation methods.

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2e90838

6 months, 3 weeks ago

Answer should be AD. Bcoz requirement is same depreciation deduction and number sequence. Same deduction relates to DEPRECIATION CONVENTION and number sequence relates to FA GROUP

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