Microsoft
MB-310 · Question #441
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might…
The correct answer is A. Yes. Posting the project fee to an unearned revenue (liability) account and using a deferral template with deferral defaults for project fees creates a deferral schedule that recognizes revenue over time. Recognizing the revenue from the deferral schedule ensures the warranty…
Implement accounts receivable, credit, collections, and subscription billing
Question
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution. After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen. A company uses Dynamics 365 Finance. The company sells extended warranty services that use a project fee journal. You need to recognize unearned revenue for the extended warranty service over time. Solution: Configure the project ledger posting for the fee category to post to the unearned revenue account, set up a deferral template, configure the deferral default for project fees, and recognize the unearned revenue from the deferral schedule. Does the solution meet the goal?
Options
- AYes
- BNo
How the community answered
(29 responses)- A79% (23)
- B21% (6)
Explanation
Posting the project fee to an unearned revenue (liability) account and using a deferral template with deferral defaults for project fees creates a deferral schedule that recognizes revenue over time. Recognizing the revenue from the deferral schedule ensures the warranty revenue is earned and posted gradually rather than immediately.
Topics
#unearned revenue#revenue recognition#extended warranty#project fee journal
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