Configure, Collect, and Report Taxes MB-310 Practice Questions (Page 3)

Questions 11–15

1. 11expert · hard

   A company sells both taxable and tax-exempt products. A customer purchases a mix of taxable and exempt items on the same order. The customer also has a tax exemption certificate that applies only to certain product categories, not all purchases. You need to configure the system so that the exemption is applied only to the eligible product categories, while other items are taxed normally. What should you configure?

   • ACreate a single item sales tax group with both taxable and exempt tax codes and assign it to all products.
   • BManually exempt the eligible lines on each sales order.
   • CCreate a sales tax group with a 0% tax code and assign it to the customer, so all items are exempt.
   • DCreate item sales tax groups for each product category, with the exempt category using a 0% tax code, and assign the appropriate group to each product. Assign the customer a sales tax group that includes the normal tax codes.
   Reveal Solution Discussion Select an answer first
2. 12application · medium

   A company needs to post sales tax collected from customers to a specific liability account and sales tax paid on purchases to a separate expense account. You need to configure the system to use the correct ledger accounts for these transactions. What should you configure?

   • ACreate two tax ledger posting groups: one for sales tax payable and one for sales tax receivable, and assign them to the appropriate tax codes.
   • BUse the system's default tax posting account and manually reclassify entries at period end.
   • CSet up the tax authority with a default ledger account for all tax transactions.
   • DCreate two sales tax groups and assign them to customers and vendors.
   Reveal Solution Discussion Select an answer first
4. 13foundation · easy

   What is the primary purpose of the sales tax calculation process in Dynamics 365 Finance?

   • ATo group tax codes for a specific customer
   • BTo determine the tax amount on a transaction
   • CTo define the ledger accounts for tax postings
   • DTo transfer tax balances to the tax authority
   Reveal Solution Discussion Select an answer first
5. 14foundation · easy

   In Dynamics 365 Finance, which entity is associated with a withholding tax code to represent the government agency that receives withholding tax payments?

   • ASettlement period
   • BWithholding tax authority
   • CWithholding tax group
   • DWithholding tax posting group
   Reveal Solution Discussion Select an answer first
6. 15foundation · easy

   In Dynamics 365 Finance, what is the result of settling sales tax for a period?

   • ATax balances are transferred to the tax authority and the tax accounts are cleared
   • BThe sales tax group is updated for the next period
   • CTax transactions are recalculated for the period
   • DNew tax codes are created for the next period
   Reveal Solution Discussion Select an answer first