Configure, Collect, and Report Taxes MB-310 Practice Questions (Page 6)

Questions 26–30

1. 26foundation · easy

   In Dynamics 365 Finance, what is the purpose of the sales tax adjustment feature?

   • ATo assign a sales tax group to a customer
   • BTo define new tax codes
   • CTo change the settlement period for a tax code
   • DTo correct tax amounts on posted transactions
   Reveal Solution Discussion Select an answer first
2. 27foundation · easy

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

   • ATo define the ledger accounts for tax postings
   • BTo specify the settlement period for tax reporting
   • CTo group tax codes that apply to a specific customer
   • DTo define the tax rate and calculation rules for a specific tax
   Reveal Solution Discussion Select an answer first
4. 28application · medium

   Fabrikam Inc. sells both taxable goods and tax-exempt goods. The tax-exempt goods are sold only to non-profit organizations. The company wants to ensure that when a sales order line contains a tax-exempt item, no sales tax is calculated, even if the customer is normally taxable. What should you configure?

   • ASet the 'Tax exempt' checkbox on the product master for each tax-exempt item.
   • BCreate a sales tax group named 'Exempt' and assign it to the tax-exempt products.
   • CCreate an item sales tax group named 'Exempt' with no tax codes, and assign it to the tax-exempt products.
   • DCreate a tax code with a rate of 0% and assign it to the tax-exempt items.
   Reveal Solution Discussion Select an answer first
5. 29expert · hard

   A company withholds tax from vendor payments. They have a vendor that provides both consulting services (subject to 10% withholding) and product purchases (not subject to withholding). The company wants the system to automatically apply withholding only to the consulting service invoices, not to the product purchase invoices. What should you configure?

   • AManually calculate and post the withholding tax on each consulting invoice.
   • BCreate a single withholding tax group with the 10% tax code and assign it to the vendor for all invoices.
   • CCreate two withholding tax groups: one with the 10% withholding tax code and one with no withholding tax code. Assign the appropriate group to the vendor based on the invoice type, and change the group on the vendor when entering different invoice types.
   • DCreate a withholding tax code and assign it to the item sales tax group for consulting services.
   Reveal Solution Discussion Select an answer first
6. 30foundation · easy

   In Dynamics 365 Finance, how are tax exemptions typically applied?

   • ABy assigning a tax exemption code to a customer or item
   • BBy setting the tax rate to zero on the tax code
   • CBy removing the tax code from the sales tax group
   • DBy changing the settlement period to a longer interval
   Reveal Solution Discussion Select an answer first