Learn the correct method to revalue fixed assets in Microsoft Dynamics 365 Finance using the Fixed Asset Journal. This step-by-step guide aligns with international accounting standards and prepares you for the MB-310 certification exam.
Table of Contents
Question
A company is using Microsoft Dynamics 365 Finance to manage their fixed assets. It has a policy of revaluing assets annually based on market conditions. You need to ensure that the fixed assets are revalued correctly while adhering to international accounting standards. What should you do?
A. Create a new fixed asset card for each revaluation and transfer balances from the old asset card.
B. Disregard the market conditions and continue with the existing depreciation schedules.
C. Manually adjust the net book value of the assets in the general ledger to reflect the revaluation.
D. Use the fixed asset journal to post revaluation with appropriate accounts and dimensions.
Answer
D. Use the fixed asset journal to post revaluation with appropriate accounts and dimensions.
Explanation
Option D is correct because using the fixed asset journal allows for accurate posting of revaluations with the necessary financial dimensions and accounts, in compliance with accounting standards. Option A is incorrect as creating a new asset card for each revaluation is unnecessary and would complicate asset tracking. Option C is incorrect because manual adjustments in the general ledger do not provide the audit trail and detailed tracking that the fixed asset journal does. Option B is incorrect as it ignores the company policy and accounting standards requiring annual revaluations based on market conditions.
Microsoft Dynamics 365 Finance Functional Consultant MB-310 certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the Microsoft Dynamics 365 Finance Functional Consultant MB-310 exam and earn Microsoft Dynamics 365 Finance Functional Consultant MB-310 certification.