Configure, Collect, and Report Taxes MB-310 Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

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

   • ATo define the ledger accounts for tax postings
   • BTo calculate tax on individual transactions
   • CTo transfer tax balances to the tax authority and clear the tax accounts
   • DTo group tax codes for a specific customer
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

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

   • ATo represent the entity responsible for collecting and reporting tax
   • BTo specify the ledger accounts for tax postings
   • CTo define the tax rate for a tax code
   • DTo group tax codes for a specific customer
   Reveal Solution Discussion Select an answer first
4. 23application · medium

   Fabrikam, Inc. sells two categories of products: standard goods taxed at 8% and food items that are exempt from sales tax. You need to ensure that when a sales order contains both a standard good and a food item, the correct tax treatment is applied to each line. What should you configure?

   • ACreate a single item sales tax group with both an 8% tax code and a 0% tax code, and assign it to all products.
   • BCreate two sales tax groups and assign them to the customer based on the product category.
   • CCreate two item sales tax groups: one with a tax code for 8% and one with a tax code for 0% (exempt). Assign the appropriate item sales tax group to each product.
   • DUse a single sales tax code with 8% and manually exempt the food line on each sales order.
   Reveal Solution Discussion Select an answer first
5. 24foundation · easy

   In Dynamics 365 Finance, where is a withholding tax group typically assigned?

   • ATo a vendor or customer record
   • BTo a tax code record
   • CTo a product or item record
   • DTo a tax authority record
   Reveal Solution Discussion Select an answer first
6. 25foundation · easy

   What is the primary purpose of tax exemptions in Dynamics 365 Finance?

   • ATo group tax codes for a specific customer
   • BTo determine the frequency of tax settlements
   • CTo define the tax rate for a tax code
   • DTo specify conditions where tax is not applicable
   Reveal Solution Discussion Select an answer first