Q1. Your company decides to use Microsoft Dynamics AX Financials for consolidated financial reporting instead of using Management Reporter.

You need to configure a new legal entity for the consolidated financial transactions.

What must you do to enable the subsidiary company’s transactions to consolidate into the new legal entity that you are creating?

A. Enable the “Use for financial consolidation process” check box in both the consolidated and subsidiary companies.

B. Enable the “Use for financial consolidation process” check box in the subsidiary company.

C. Enable the “Use for financial elimination process” check box in the consolidation company.

D. Enable the “Use for financial consolidation process” check box for the consolidated

company.

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Q2. You are setting up an allocation rule and distributing amounts based on revenue dollars.

You need to share the cost of corporate advertising expenses across all departments and base each department’s sales in proportion to the total sales of all departments.

Which allocation should you choose?

A. Fixed Percentage

B. Equally

C. Fixed Weight

D. Basis

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Q3. You are the director of finance.

You are starting to create budgets for the fiscal year and want to generate budget plans from prior year expenses. However, this year, you know your expenses will be more than last.

Which field should you set in the generate budget plan from the general ledger form to account for this increase in budget?

A. Minimum

B. Percent

C. Factor

D. Rounding rule

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Q4. You are the finance manager at your company, and you are configuring the bank module. Your primary concern is reviewing processes before posting.

Aside from workflow, which two processes are in the cash and bank parameters for an un- posted journal to be created before posting? Each correct answer presents a complete solution.

A. intercompany transfers

B. electronic payments

C. deposit slip cancellations

D. check reversals

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Q5. You are generating a budget plan from the general ledger.

You first need to select an Action (reason) for how you want to create this budget plan. Which three options can you choose from in Microsoft Dynamics AX Financials? Each

correct answer presents a complete solution.

A. Update the existing budget plan scenario based on a factor.

B. Update the existing budget plan scenario, and append new data.

C. Create a new budget plan from a template.

D. Create a new budget plan.

E. Replace the existing budget plan scenario.

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Q6. You are the accounts payable manager in a European subsidiary of your company.

Your company purchases goods from a vendor that is not located in Europe. The vendor did not charge sales tax on the invoice but the customs office sends an invoice because the goods crossed the border and the company declared them at customs.

What should you do?

A. Report sales tax on the imported goods.

B. Report withholding sales tax on the imported goods.

C. Report conditional sales tax on the imported goods

D. Report sales tax exemption on the imported goods.

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Q7. You are setting up taxes on customer invoices. You need to report a sales tax on the invoice, as and when it is settled, to the tax authorities.

When the customer settles the invoice with the second payment of 625 USD, you report the remaining sales tax. What should you set up in this situation?

A. Withholding sales tax

B. Sales tax exemption

C. Standard sales tax

D. Conditional sales taxes

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Q8. Your company needs to reuse a check number in case a check was printed incorrectly or the check stock was not used. You need to allow reuse of the check number. Where do you define this action?

A. in the Vendors area of the Accounts payable parameters setup form

B. in the Customers area of Accounts receivable parameters setup form

C. in the Cash and bank management parameters form of the Cash and bank management parameters setup form

D. in the Posting area of the General ledger parameters setup form

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Q9. You are processing a customer payment and want to generate a payment line based on due date so that you can search the invoice lines that meet selected search criteria.

What should you do?

A. Use Settlement

B. Use payment transfer.

C. Use Manual Payment Journal

D. Use Payment proposal

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Q10. An organization has a policy of charging the same depreciation amount for the fixed asset in each de-preciation period. You need to configure depreciation according to this policy. Which depreciation method should you use?

A. Straight line service life

B. Consumption

C. Reducing balance

D. Factor

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