Exam MB-310 topic 19 question 7 discussion

D. Use tax payable Explanation: Use tax payable is the ledger account used to track taxes that a company is liable to pay on purchases or services but are not reported or claimed to the tax authority. This aligns with the requirement for Humongous Insurance's subsidiary to track such use taxes separately in their Dynamics 365 Finance implementation.

The missing part of the question is that "Humongous Insurance's subsidiary must track use taxes that are not claimed or reported to Chinese tax agency" The solution is to "Use tax payable" field which allow you to select the main account for posting incoming Use taxes that are payable to tax authorities. Make sure the "Use tax" option is selected in the Sales tax code within the Sales tax group to post Use tax.

Should be D: background of the reverse charge principle lies in the fact that some vendors don't report the taxes to the tax authority - and the receiving company nevertheless deducts those taxes as deductible input taxex.

This question makes no sense. What posting groups? For what? It is not written in the question.