Configure, Collect, and Report Taxes MB-310 Practice Questions (Page 1)

Questions 1–5

1. 1application · medium

   A company sells products in a jurisdiction where the sales tax rate changes from 5% to 6% effective on the first day of the next month. You need to ensure that invoices created after the effective date use the new rate, while invoices created before the effective date continue to use the old rate. What should you do?

   • AEdit the existing tax code and change the percentage from 5% to 6% on the effective date.
   • BCreate a new tax code with 6% and assign it to the sales tax group, then remove the old tax code from the group on the effective date.
   • CCreate a new sales tax group for the new rate and assign it to all customers on the effective date.
   • DUse the tax code's effective-dated values to define the 5% rate for the current period and the 6% rate for the future period.
   Reveal Solution Discussion Select an answer first
2. 2foundation · easy

   In Dynamics 365 Finance, where is an item sales tax group typically assigned?

   • ATo a product or item record
   • BTo a tax authority record
   • CTo a vendor record
   • DTo a customer record
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   What is the primary purpose of a settlement period in Dynamics 365 Finance?

   • ATo specify the ledger accounts for tax postings
   • BTo group tax codes for a specific customer
   • CTo define the tax rate for a tax code
   • DTo determine the frequency of tax reporting and payments
   Reveal Solution Discussion Select an answer first
5. 4foundation · easy

   Which of the following is defined on a tax code in Dynamics 365 Finance?

   • AThe customer to which the tax applies
   • BThe item to which the tax applies
   • CThe tax rate percentage
   • DThe frequency of tax settlements
   Reveal Solution Discussion Select an answer first
6. 5foundation · easy

   What is the primary purpose of a withholding tax group in Dynamics 365 Finance?

   • ATo determine the frequency of withholding tax settlements
   • BTo define the tax rate for a withholding tax code
   • CTo specify the ledger accounts for withholding tax postings
   • DTo group withholding tax codes that apply to a specific vendor or customer
   Reveal Solution Discussion Select an answer first