A manufacturing company builds a custom piece of equipment internally. The equipment is assembled from raw materials that are issued from inventory. The company wants to capitalize the cost of the materials as a fixed asset acquisition. What is the most appropriate way to record this acquisition?

Create a fixed asset journal with an Acquisition transaction type and enter the material cost.

Use a project with a fixed asset profile to accumulate costs and then transfer the project costs to the fixed asset.

Create an inventory journal with a fixed asset line to transfer the material value to the asset.

Create a purchase order for the materials and mark the line as a fixed asset.

A company acquires a piece of office equipment for $2,500 by writing a check directly to the vendor. No purchase order is used. The asset must be recorded in the fixed asset module. What is the most efficient way to record this acquisition?

Create a vendor invoice without a purchase order and enter the fixed asset number on the invoice line.

Use the inventory journal to transfer the equipment from inventory to fixed assets.

Use the Fixed assets journal to create an acquisition line for the asset, then post the journal.

Create a general journal entry with a line for the asset account and a line for the bank account, then post the journal.

A company has a large piece of machinery that is being split into two separate assets because one part is being sold. The original asset has a net book value of $100,000. You need to split the asset so that 30% of the value is transferred to a new asset. What is the correct process?

Use the reclassification journal to move the entire asset to a new asset ID.

Create a new fixed asset and manually adjust the value in the fixed asset journal.

Dispose of the original asset and acquire a new asset for the remaining 70%.

Use the fixed asset journal to create a split transaction for the original asset, specifying the percentage to transfer to the new asset.

Microsoft Certified:Dynamics 365 Finance Functional Consultant Associate

Domain 5Objective 2

Process Fixed Asset Transactions MB-310 Practice Questions (Page 3)

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 11–15

11application · medium
A manufacturing company builds a custom piece of equipment internally. The equipment is assembled from raw materials that are issued from inventory. The company wants to capitalize the cost of the materials as a fixed asset acquisition. What is the most appropriate way to record this acquisition?
Select an answer first
12foundation · easy
In Dynamics 365 Finance, which document type is used to record the disposal of a fixed asset when the sale proceeds are invoiced to a customer?
Select an answer first
13application · medium
A company acquires a piece of office equipment for $2,500 by writing a check directly to the vendor. No purchase order is used. The asset must be recorded in the fixed asset module. What is the most efficient way to record this acquisition?
Select an answer first
14foundation · easy
In Dynamics 365 Finance, which field on a purchase order line indicates that the purchased item is a fixed asset?
Select an answer first
15application · medium
A company has a large piece of machinery that is being split into two separate assets because one part is being sold. The original asset has a net book value of $100,000. You need to split the asset so that 30% of the value is transferred to a new asset. What is the correct process?
Select an answer first

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Process Fixed Asset Transactions MB-310 Practice Questions (Page 3)

Questions 11–15

A manufacturing company builds a custom piece of equipment internally. The equipment is assembled from raw materials that are issued from inventory. The company wants to capitalize the cost of the materials as a fixed asset acquisition. What is the most appropriate way to record this acquisition?

In Dynamics 365 Finance, which document type is used to record the disposal of a fixed asset when the sale proceeds are invoiced to a customer?

A company acquires a piece of office equipment for $2,500 by writing a check directly to the vendor. No purchase order is used. The asset must be recorded in the fixed asset module. What is the most efficient way to record this acquisition?

In Dynamics 365 Finance, which field on a purchase order line indicates that the purchased item is a fixed asset?

A company has a large piece of machinery that is being split into two separate assets because one part is being sold. The original asset has a net book value of $100,000. You need to split the asset so that 30% of the value is transferred to a new asset. What is the correct process?

Keep studying — Manage fixed assets