nerdexam
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)
  • A
    79% (23)
  • B
    21% (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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