Microsoft Dynamics 365 Finance — Question 121

A company is using Microsoft Dynamics 365 Finance. The company sells one of its assets.

You need to dispose of this asset in the system.

Which transaction type should you use?

Answer options

• A. Disposal - sale
• B. Extraordinary depreciation
• C. Disposal - scrap
• D. Acquisition

Correct answer: C

Explanation

The correct answer is C, Disposal - scrap, which is used to remove an asset from the books when it is no longer in use. Option A, Disposal - sale, implies a different type of transaction that is not applicable here since the asset has been sold. Option B, Extraordinary depreciation, relates to adjusting the asset's value rather than disposing of it. Option D, Acquisition, pertains to acquiring new assets, not disposing of existing ones.