[Nov 01, 2021] DumpsQuestion IIA-CIA-Part3 Exam Practice Test Questions (Updated 405 Questions)
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IIA IIA-CIA-Part3 Exam Syllabus Topics:
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NEW QUESTION 168
In which type of business environment are price cutting strategies and franchising strategies most appropriate?
- A. Competitive, embryonic.
- B. Embryonic, focused.
- C. Mature, fragmented.
- D. Fragmented, decline.
Answer: C
NEW QUESTION 169
In its first year of operations, an entity had US $50,000 of fixed operating costs. It sold 10,000 units at a US $10 unit price and incurred variable costs of US $4 per unit. If all pnc es and costs will be the same in the second year and sales are projected to rise to 25,000 units, what will the degree of operating leverage the extent to which fixed costs are used in the entity's operations) be in the second yc _u?
- A. 1 50
- B. 2.0
- C. 1 25
- D. 6.0
Answer: A
Explanation:
The DOL may be calculated as the contribution margin sales - variable cost) divided by the excess of the contribution margin ever It <:ed costs. The contribution margin is US $150.000 [25.000 units x $10 unit price - $4 unit variable cost)]. Hence, the DOL in the second year is 1.50 [US $150,000 CM / $150,000 - $50,000 FC)].
NEW QUESTION 170
Which of the following statements accurately describes one of the characteristics that distinguishes a multinational company from a domestic company?
- A. A multinational company has stockholders in other countries.
- B. A multinational company uses raw materials and components from more than one country.
- C. A multinational company operates outside of its country of origin.
- D. A multinational company exports its products to other countries.
Answer: C
NEW QUESTION 171
A brand manager in a consumer food products organization suspected that several days of the point-of-sale data on the spreadsheet from one grocery chain were missing. The best approach for detecting missing rows in spreadsheet data would be to:
- A. Compare product identification codes by store for consecutive periods.
- B. Compare product identification codes for consecutive periods.
- C. Sort on product identification code and identify missing product identification codes.
- D. Review store identification code and identify missing product identification codes.
Answer: A
NEW QUESTION 172
Which stage of group development is characterized by a decrease in conflict and hostility among group members and an increase in cohesiveness?
- A. Norming stage.
- B. Performing stage.
- C. Storming stage.
- D. Forming stage.
Answer: A
NEW QUESTION 173
What must be monitored in order to manage risk of consumer product inventory obsolescence?
1.Inventory balances. 2.Market share forecasts. 3.Sales returns. 4.Sales trends.
- A. 4 only
- B. 1 only
- C. 1 and 4 only
- D. 1, 2, and 3 only
Answer: C
NEW QUESTION 174
P Co. purchased term bonds at a premium on the open market. These bonds represented
20% of the outstanding class of bonds issued at a discount by S Co., P's wholly owned subsidiary. P intends to hold the bonds until maturity. In a consolidated balance sheet, the difference between the bond carrying amounts of the two companies is:
- A. Included as an increase in retained earnings.
- B. Reported as a deferred debit to be amortized over the remaining life of the bonds. D Reported as a deferred credit to be amortized over the remaining life of the bonds.
- C. Included as a decrease in retained earnings.
Answer: C
Explanation:
Because a consolidated financial statement should include both P and S as a Single consolidated) reporting entity, the purchase of the outstanding bonds of S by Pat a premium was in substance a retirement of debt for more than the debt's carrying amount. This transaction should be reflected in the consolidated income statement for the year of the purchase as a constructive loss from the retirement of debt. Hence, the effect on the balance sheet is to decrease retained earnings by an amount equal to the premium plus the unamortized discount before the tax effect.
NEW QUESTION 175
A bank has changed from a system in which lines are formed in front of each teller to a one-line, multiple-server system. When a teller is free, the person at the head of the line goes to that teller. Implementing the new system will:
- A. Increase accuracy in teller reconciliations at the end of the day because fewer customers are served by each teller.
- B. Improve on-the-job training for tellers because each will perform different duties.
- C. Decrease time customers spend in the line.
- D. Decrease the bank's wage expenses because the new system uses fewer tellers.
Answer: C
Explanation:
When all customers must wait in a single queue, a decrease in waiting time is possible given multiple servers. An added effect is to increase customer satisfaction.
NEW QUESTION 176
Which of the following statements is true regarding the resolution of interpersonal conflict?
- A. Deferring action should be used until there is sufficient time to fully deal with the issue.
- B. Timely and unambiguous clarification of roles and responsibilities will eliminate most interpersonal conflict.
- C. Reorganization would probably not help ambiguous or overlapping jurisdictions.
- D. Unrealized expectations can be avoided with open and honest discussion.
Answer: D
NEW QUESTION 177
Which of the following controls most likely could prevent computer personnel from
modifying programs to bypass programmed controls?
- A. Segregation of duties within computer for computer programming and computer operations.
- B. Physical security of computer facilities in limiting access to computer equipment.
- C. Participation of user department personnel in designing and approving new systems.
- D. Periodic management review of computer utilization reports and systems documentation.
Answer: A
Explanation:
Programmers and analysts can modify programs, data files, and controls. Thus, they II should have no access to programs used to process transactions. Segregation of programming and operations is a control necessary to prevent unauthorized modifications of programs.
NEW QUESTION 178
Under the share <List A>, the par value per outstanding share will <List B>, List A List B:
- A. Option D
- B. Option B
- C. Option A
- D. Option C
Answer: A
Explanation:
A share split results in a lower par value per share because the total number of shares increases but the total par value of outstanding share does not change.
NEW QUESTION 179
Questions about which of the following can legally be asked in recruiting interviews?
- A. Criminal record but only for security clearance purposes)
- B. Kind of military discharge.
- C. Number of children.
- D. Age.
Answer: A
Explanation:
In a recruiting interview, one may not ask about the applicant's marital status, number of children, height and weight, criminal record except for the purpose of giving a security clearance), kind of military discharge, or age.
NEW QUESTION 180
Buyer-based pricing involves:
- A. Basing prices on the product's perceived value.
- B. Basing prices on competitors' prices.
- C. Adding a standard markup to the cost of the product.
- D. Determining the price at which the product will earn a target profit.
Answer: A
Explanation:
Buyer-based pricing involves basing prices on the product's perceived value rather than on the seller's cost. Nonprice variables in the marketing mix augment the perceived value. For example, a cup of coffee may have a higher price at an expensive restaurant than at a fast food outlet.
NEW QUESTION 181
If the amount to be received in 4 years is US $137,350, and given the correct factor from the 10% time-value-of-money table below, what is the current investment?
- A. US $93.810.05
- B. US $201,094.14
- C. US $30,034.33
- D. US $43,329.44
Answer: A
Explanation:
The current investment is the present value of the given future amount. It equals the future amount multiplied by the factor for the present value of US $1 for four periods at 10%. Accordingly, the current investment is US $93,810.05$137,350 .6830).
NEW QUESTION 182
In a review of an EDI application using a third-party service provider, the auditor should:
I. Ensure encryption keys meet ISO standards
II. Determine whether an independent review of the service provider's operation has been conducted.
III. Verify that only public-switched data networks are used by the service provider
IV.
Verify that the service provider's contracts include necessary clauses, such as the right to audit
- A. II and IV.
- B. II and III.
- C. I and ll.
- D. I and IV.
Answer: A
Explanation:
An auditor should review trading partner agreements and contracts with third-party service providers. These documents should contain necessary clauses and appropriately limit liabilities. Moreover, legal counsel should have reviewed the agreements or contracts. An auditor should also determine whether the third- party service provider's operations and controls have been independently reviewed e.g., by public accountants).
Topic 4, Volume D
NEW QUESTION 183
Which of the following budgets must be prepared first?
- A. Selling and administrative expenses budget.
- B. Sales budget.
- C. Production budget.
- D. Cash budget.
Answer: B
NEW QUESTION 184
A corporation reported salaries expense of US $190,000 for December of the current year. The following data are from its records:
The amount of cash payments for salaries during December of the current year was
- A. US $166,000
- B. US $214,000
- C. US $154,000
- D. US $226,000
Answer: A
Explanation:
An increase in prepaid salaries indicates that salaries expense is less than the cash paid for salaries. An increase in salaries payable indicates that salaries expense is more than the cash paid for salaries. Thus, the amount of cash payments for salaries was US $166.000$190,000 salaries expense + $6,000 increase in prepaid salaries - $30,000 increase in salaries payable).
NEW QUESTION 185
What is the method of presenting a noncontrolling interest in a consolidated balance sheet?
- A. As a separate item within the equity section.
- B. As a deduction from contra to goodwill from consolidation if any.
- C. As a separate item within the deferred credits section.
- D. By means of notes to the balance sheet.
Answer: A
Explanation:
A noncontrolling is classified as an equity account and separated from the equity of majority shareholders within that section.
NEW QUESTION 186
The economic order quantity can be calculated using the following formula:
Which of the following describes how the optimal order size will change if the annual demand increases by 36 percent?
- A. Decrease by about 17 percent.
- B. Increase by about 17 percent.
- C. Increase by about 7 percent.
- D. Decrease by about 7 percent.
Answer: B
NEW QUESTION 187
Which of the following must be adjusted to index a progressive tax system to inflation?
- A. Tax deductions, exemptions, and tax filings.
- B. Tax brackets, tax deductions, and tax payments.
- C. Tax deductions, exemptions, and tax brackets.
- D. Tax brackets, exemptions, and nominal tax receipts.
Answer: C
Explanation:
Explanation
NEW QUESTION 188
Which of me following application controls is the most dependent on the password owner?
- A. Password aging
- B. Password rotation
- C. Password selection
- D. Password lockout
Answer: C
NEW QUESTION 189
The following information is available for an entity for the quarter ended March 31 of the current year:
The gross profit margin is normally 200 of sales. What is the estimated cost of the merchandise inventory at March 31 of the current year?
- A. US $20,000
- B. US $40,000
- C. US $180,000
- D. US $60.000
Answer: D
Explanation:
The gross profit margin percentage is given as 20% of sales. Hence, cost of goods sold must have been US $160,000 [$:4110,000 sales x1_0 - 2)]. The estimated cost of the inventory at March 31 is computed as follows:
C:\Documents and Settings\usernwz1\Desktop\1.PNG An entity had the following opening and closing inventory balances during the current
The following transactions and events occurred during the current year:
US $300,000 of raw materials were purchased, of which US $20,000 were returned
because of defects. US $600,000 of direct labor costs were incurred.
US $750,000 of production overhead costs were incurred.
NEW QUESTION 190
Which of the following statements is true with regard to information protection?
- A. Information is not considered personal if it can only be linked to or used to identify an individual indirectly.
- B. Good protection controls remove any restrictions on the quantity of personal information that can be collected
- C. Individuals who provide personal information to organizations share in the risk of inappropriate disclosure.
- D. All personal information, by definition is considered to be sensitive, requiring specialized controls.
Answer: D
NEW QUESTION 191
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