Learn the best method to split a large fixed asset into smaller assets using the Fixed Asset Reclassification Journal in Dynamics 365 Finance. Maintain accurate tracking and financial integrity effortlessly.
Table of Contents
Question
A company is planning to split a large fixed asset into multiple smaller assets for better tracking and management. You need to execute the split without impacting the overall financial position of the company. What should you do?
A. Dispose of the large asset and create new fixed asset cards for the smaller assets with their respective acquisition costs.
B. Manually adjust the book value of the large asset and create journal entries for the new smaller assets.
C. Transfer the large asset to a temporary account until the smaller assets can be individually assessed and valued.
D. Use the fixed asset reclassification journal to split the asset into multiple new assets with proportionate values.
Answer
D. Use the fixed asset reclassification journal to split the asset into multiple new assets with proportionate values.
Explanation
Option D is correct because the fixed asset reclassification journal allows for the splitting of an asset into multiple new assets with proportionate values, ensuring the financial position remains unchanged. Option A is incorrect as it involves unnecessary disposal and does not ensure continuity of the original asset’s value. Option B is incorrect due to the manual process being error-prone and not utilizing the system’s capabilities. Option C is incorrect as it introduces unnecessary complexity and does not provide an immediate solution.
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.