MB-310: Dynamics 365 Finance Functional Consultant Practice Exam

What the MB-310 exam covers

• Implement financial management300 questions
• Implement accounts receivable, credit, collections, and subscription billing149 questions
• Implement and manage accounts payable and expenses110 questions
• Manage budgeting110 questions
• Manage fixed assets112 questions

Free MB-310 sample questions

A sample of 10 questions with answers and explanations. Sign up free to practice all 781.

1. Question 1Implement financial management

   Which element of the general ledger records the natural account a transaction posts to?

   • AThe main accountCorrect
   • BThe financial dimension, which classifies the transaction for analysis and reporting
   • CThe account structure, which controls the combinations that may be posted together
   • DThe posting layer, which separates statutory entries from tax and operational ones
   ✓ Correct answer: A

   A ledger account in Dynamics 365 Finance is the main account plus the financial dimensions that accompany it. The main account is the natural account, carrying the type, the category and the currency and posting rules. Dimensions classify the same amount by department, cost centre or purpose, and the account structure governs which combinations are permitted.

   Why the other options are wrong

   • BA financial dimension classifies the entry rather than naming the natural account.
   • CThe account structure controls permitted combinations rather than recording the account.
   • DThe posting layer separates entries by purpose rather than naming the account.
2. Question 2Implement financial management

   Which describes shared payment setup between customers and vendors?

   • AConfiguration that lets both use the same methods of payment and formatsCorrect
   • BConfiguration that lets a customer pay a vendor invoice directly
   • CConfiguration that merges the customer and vendor subledgers
   • DConfiguration that shares bank accounts between legal entities
   ✓ Correct answer: A

   Sharing the payment configuration removes duplicate maintenance where the same bank formats and payment methods serve receipts and disbursements. The subledgers remain separate, which is what keeps receivables and payables reporting distinct. The saving is in maintenance rather than in how the transactions themselves post.

   Why the other options are wrong

   • BA customer paying a vendor invoice is not what shared payment setup provides.
   • CThe subledgers stay separate; only the payment configuration is shared.
   • DBank accounts belong to a legal entity rather than being shared by this setup.
3. Question 3Implement financial management

   Which is the correct interpretation of running a ledger allocation in proposal mode?

   • AThe generated lines can be reviewed and edited before they are postedCorrect
   • BThe lines are posted immediately and can be reversed afterwards
   • CThe rule is validated but no lines are generated at all
   • DThe rule is applied to a prior period for comparison
   ✓ Correct answer: A

   Proposal mode produces the journal so the result can be checked against expectation, which matters when the basis has moved unexpectedly. Editing before posting handles the exception without changing the rule itself. Posting straight through is available but leaves less room to catch a surprise.

   Why the other options are wrong

   • BPosting immediately with reversal afterwards is what proposal mode avoids.
   • CThe rule does generate lines in proposal mode rather than only being validated.
   • DThe rule is not applied to a prior period for comparison by this mode.
4. Question 4Implement financial management

   A reviewer wants to check an allocation before it affects the ledger. What should be done?

   • ARun the allocation in proposal mode and review the generated journalCorrect
   • BRun the allocation and reverse it if the result is wrong
   • CRun the allocation in a copy of the production environment
   • DRun the allocation with a zero amount to see the proportions
   ✓ Correct answer: A

   Proposal mode produces the lines without posting them, so they can be inspected and adjusted before anything reaches the ledger. That is the intended review point. Posting and reversing leaves entries behind, and a zero amount would produce nothing informative.

   Why the other options are wrong

   • BRun the allocation and reverse it, and a pair of entries is left in the ledger for no reason.
   • CRunning the allocation in a copy environment tests the rule rather than this month's figures.
   • DRunning the allocation with a zero amount produces nothing useful to review.
5. Question 5Implement accounts receivable, credit, collections, and subscription billingSelect all that apply

   Which TWO does a customer posting profile control? (Choose TWO)

   • AThe summary account receivables post toCorrect
   • BThe accounts used for cash discount and interest postingsCorrect
   • CThe terms of payment applied to new invoices
   • DThe credit limit applied to the customer
   ✓ Correct answer: A, B

   A posting profile is about where amounts land in the ledger, covering the receivable itself and the related postings that arise from settlement. Terms and credit limits govern behaviour rather than accounting. Keeping the two ideas separate makes the configuration easier to reason about.

   Why the other options are wrong

   • CThe terms of payment applied to new invoices come from the customer or the group.
   • DThe credit limit applied to the customer is a credit management setting.
6. Question 6Implement accounts receivable, credit, collections, and subscription billing

   A customer pays an invoice within the discount period but takes a larger discount than agreed. What is the appropriate action?

   • ASettle with the agreed discount and pursue or write off the excess deliberatelyCorrect
   • BAccept the discount taken and close the invoice without a decision
   • CReject the payment and ask for the correct amount
   • DRecalculate the cash discount configuration to match the payment
   ✓ Correct answer: A

   The difference between the agreed and the claimed discount is a real amount that should be either recovered or written off as a conscious choice, with the write off recorded where the configuration says. Silently accepting it teaches the customer to repeat it. Changing the configuration to match one payment would apply the error to everyone.

   Why the other options are wrong

   • BAccepting the larger discount without a decision quietly concedes an amount every time it happens.
   • CRejecting the payment over a discount difference is disproportionate in most commercial contexts.
   • DRecalculating the discount configuration to match one payment changes the terms for all customers.
7. Question 7Implement and manage accounts payable and expenses

   Which describes the effect of generating payments from a payment journal?

   • AThe payment file or documents are produced and the payments become ready to postCorrect
   • BThe invoices are settled and the ledger is updated immediately
   • CThe vendor accounts are blocked until the payments clear
   • DThe proposal criteria are saved for the next run
   ✓ Correct answer: A

   Generation creates the output the bank or the vendor receives, while posting is the separate step that updates the ledger and settles the invoices. Keeping them apart means a file can be checked or regenerated before anything is committed. Confusing the two leads to unnecessary reversals.

   Why the other options are wrong

   • BSettlement and the ledger update happen when the journal posts rather than when the file is made.
   • CVendor accounts are not blocked by generating a payment.
   • DSaving the proposal criteria is a separate convenience rather than what generation does.
8. Question 8Manage budgetingSelect all that apply

   Which TWO are specified on a budget register entry line? (Choose TWO)

   • AThe main account and dimension combination the amount applies toCorrect
   • BThe date or period the budget amount belongs toCorrect
   • CThe vendor the budgeted spending will be paid to
   • DThe workflow that approved the budget
   ✓ Correct answer: A, B

   A budget figure means nothing without knowing what it is for and when it applies, so those two are the essential coordinates on every line. Amounts can then be compared with actuals on the same basis. Vendors and approval history are not part of the budget figure itself.

   Why the other options are wrong

   • CThe vendor budgeted spending will be paid to is not part of a budget register entry.
   • DThe workflow that approved the budget is recorded separately from the entry's lines.
9. Question 9Manage budgeting

   An organisation wants departments to prepare budgets but finance to hold the final say. What supports this?

   • AA planning process with a departmental preparation stage and a finance approval stageCorrect
   • BA budget control rule that blocks any spending beyond the departmental proposals
   • CA separate budget model for each department, consolidated at the end of the year
   • DA budget register entry per department, entered centrally by the finance team
   ✓ Correct answer: A

   Stages with different owners are precisely how a negotiated budget is expressed, and stage security enforces who may change what at each point. Control rules govern spending rather than preparation. Central entry would remove the departmental ownership the organisation wants.

   Why the other options are wrong

   • BA control rule governs spending against a budget rather than how it is prepared.
   • CSeparate models per department fragment the plan without creating an approval step.
   • DCentral entry removes exactly the departmental ownership the organisation is asking for.
10. Question 10Manage fixed assets

    Which is the correct interpretation of accumulated depreciation exceeding the acquisition cost?

    • ASomething has been posted incorrectly, since the charge should stop at the floorCorrect
    • BThe asset has been revalued upwards and the depreciation has followed the new value
    • CThe asset is being depreciated in a second book that shares the same accounts
    • DThe depreciation convention has taken an extra period at the end of the life
    ✓ Correct answer: A

    Depreciation stops when the net book value reaches zero or the residual, so an excess means a manual adjustment or an incorrect opening balance has been entered. Reviewing the transactions on the book identifies it quickly. It is not something the automatic calculation produces.

    Why the other options are wrong

    • BA revaluation upwards would raise the value rather than push depreciation past cost.
    • CA second book keeps its own values and would not push the first past its cost.
    • DThe depreciation convention affects the timing of the charge rather than letting it exceed cost.

Who this MB-310 practice exam is for

This practice set is for anyone preparing for the MB-310: Dynamics 365 Finance Functional Consultant exam - from first-time candidates building a foundation to experienced Microsoft practitioners doing a final review before test day. If you learn best by working through realistic questions and reading why each answer is right or wrong, it is built for you.

How to use this MB-310 practice exam

1. Start with the free sample questions above to gauge your current baseline.
2. Read the full explanation on every question, including why each wrong option is wrong.
3. Track your weak domains and focus your study where you are losing the most marks.
4. Once you are scoring consistently well, take a timed, full-length mock exam.
5. Use your readiness score to decide when you are ready to book the real MB-310 exam.

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