A construction company is building a new office building. The project will incur costs for materials, labor, and subcontractor invoices over several months. The company wants to capitalize these costs as a fixed asset when the building is complete. What should you set up to ensure that project costs are automatically transferred to the fixed asset?

Create a fixed asset journal and manually post each cost as an acquisition.

Create a purchase order for the entire building cost and post it.

Set up a project with a fixed asset profile and enable the 'Capitalize costs' option.

Use an inventory journal to transfer all costs to the fixed asset.

A company acquires a used forklift from a private seller. There is no purchase order or vendor invoice. The asset is already set up in the fixed asset register with a book. The accountant needs to record the acquisition cost of $5,000 and start depreciation from the next month. What should the accountant do?

Create a purchase order for the forklift and post it.

Create a fixed asset journal with a line for the asset, transaction type 'Acquisition', and post it.

Run the depreciation proposal to create the acquisition automatically.

Create a general journal with a debit to the fixed asset account and credit to the seller.

Microsoft Certified:Dynamics 365 Finance Functional Consultant Associate

Domain 5Objective 2

Process Fixed Asset Transactions MB-310 Practice Questions (Page 2)

Part of the Manage fixed assets domain, which accounts for 10–15% of the MB-310 exam. Microsoft does not publish an official question count, but from its 100-minute exam (~40–65 total, ~4–10 in this domain), expect 2–5 from this objective — we provide 40 practice questions to prepare you well beyond it. (estimate)

40questions here

8free pages

14concepts

10–15%of the exam

14 Concepts in This Objective

Fixed Asset Disposal via Free Text Invoices
Fixed Asset Acquisition via Purchase Orders
Fixed Asset Acquisition via Journals
Fixed Asset Acquisition via Inventory Journals
Fixed Asset Acquisition via Projects
Create Fixed Asset Budgets
Transfer Budgets to Budgeting Module
Process Fixed Asset Depreciation
Multi-Company Fixed Asset Depreciation
Process Fixed Asset Split
Process Fixed Asset Reclassification
Process Fixed Asset Transfer
Process Fixed Asset Disposals
Process Other Fixed Asset Transactions

Questions 6–10

6application · medium
A construction company is building a new office building. The project will incur costs for materials, labor, and subcontractor invoices over several months. The company wants to capitalize these costs as a fixed asset when the building is complete. What should you set up to ensure that project costs are automatically transferred to the fixed asset?
Select an answer first
7foundation · easy
When processing a fixed asset disposal using a free text invoice in Dynamics 365 Finance, which field on the free text invoice line identifies the fixed asset being disposed of?
Select an answer first
8foundation · easy
In Dynamics 365 Finance, which journal is used to acquire a fixed asset from inventory, such as when an item is transferred from inventory to be used as a fixed asset?
Select an answer first
9foundation · easy
In Dynamics 365 Finance, which journal type is commonly used to record a fixed asset acquisition when the asset is purchased without using a purchase order?
Select an answer first
10application · medium
A company acquires a used forklift from a private seller. There is no purchase order or vendor invoice. The asset is already set up in the fixed asset register with a book. The accountant needs to record the acquisition cost of $5,000 and start depreciation from the next month. What should the accountant do?
Select an answer first

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Process Fixed Asset Transactions MB-310 Practice Questions (Page 2)

Questions 6–10

When processing a fixed asset disposal using a free text invoice in Dynamics 365 Finance, which field on the free text invoice line identifies the fixed asset being disposed of?

In Dynamics 365 Finance, which journal is used to acquire a fixed asset from inventory, such as when an item is transferred from inventory to be used as a fixed asset?

In Dynamics 365 Finance, which journal type is commonly used to record a fixed asset acquisition when the asset is purchased without using a purchase order?

Keep studying — Manage fixed assets