M365 Dynamics Finance and Operations -Test Your Knowledge 7

You must set up the chart of accounts for intercompany transactions. Which ledger account type should you specify for the Due to and Due from ledger accounts?

• Reporting

• Profit and loss

• Balance sheet

• Revenue

You want to post an intercompany general ledger journal. The companies for which you set up intercompany accounting, share the same chart of accounts. What do you set up to enable intercompany posting?

• Set up the intercompany posting accounts in only one company.

• Set up the intercompany posting accounts in both companies.

• Set up the intercompany journal name in only one company.

• Set up the intercompany journal name in both companies.

You are using a General journals page to create and post intercompany journals to be posted. In this journal, you have one voucher with three lines. When you post, what is the minimum number of vouchers that are posted, and how many per company?

• Three vouchers total and one voucher for each company.

• Four vouchers total and two vouchers for each company.

• Six vouchers total and three vouchers for each company.

• Two vouchers total and one voucher for each company.

Which of the following is NOT a requirement for setting up intercompany transactions?

• Establishing intercompany posting accounts.

• Different chart of accounts for each company.

• Setting up Due to and Due from ledger accounts.

• Same chart of accounts for all companies involved.

What is the purpose of setting up the intercompany journal name in both companies?

• To streamline the intercompany transaction process.

• To ensure accurate financial reporting.

• To avoid duplicate entries in the ledger.

• To segregate intercompany transactions from regular transactions.

When posting intercompany journals, why is it important to have a clear distinction between Due to and Due from ledger accounts?

• To maintain a balance between assets and liabilities.

• To calculate the net profit or loss accurately.

• To comply with regulatory requirements.

• To track the flow of funds between companies.