Share Latest Jun-2024 IIA-CIA-Part3Test Practice Test Questions, Exam Dumps [Q19-Q41]

NO.19 If the average age of inventory is 60 days, the average age of the accounts payable is 30 days, and the average age of accounts receivable is 45 days, the number of days in the cash flow cycle is:

NO.20 Which of the following will allow a manufacturer with limited resources to maximize profits?

NO.21 Which of the following statements about a finance lease is false?

NO.22 A vendor sells specialty inks on consignment to a manufacturer of colored paper at a price of US $200 per barrel. Payment is made to the vendor in the month the manufacturer uses the barrels in production. The vendor records revenues when the barrels are shipped and makes no adjusting entries to record unearned revenues until the December 31 closing of the books. At the end of July the manufacturer had 40 barrels of ink on consignment.
During August, the vendor consigned 50 barrels and received payment for 30 barrels. Another five barrels were returned to the vendor by the manufacturer for credit. At the end of August, what is the amount of unearned revenue contained in the vendor’s accounts receivable from the manufacturer?

NO.23 Heniser Pet Foods manufactures two products, X and Y.
The unit contribution margins for Products X and Y are US $30 and US $50, respectively. Each product uses Materials A and B. Product X uses 6 pounds of Material A and 12 pounds of Material B. Product Y uses 12 pounds of Material A and 8 pounds of Material B. The company can purchase only 1,200 pounds of Material A and 1,760 pounds of Material B. The optimal mix of products to manufacture is:

NO.24 Which of the following factors is most likely to lead to a lack of cohesiveness in a project team?

NO.25 A benefit of using computer-aided software engineering CASE) technology is that it can ensure that:

NO.26 The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:

NO.27 Electronic commerce e-commerce) is generally defined as “conducting commercial activities over the Internet.” These commercial activities can be all but which of the following?

NO.28 Which of the following are likely indicators of ineffective change management?
1. IT management is unable to predict how a change will impact interdependent systems or business processes.
2. There have been significant increases in trouble calls or in support hours logged by programmers.
3. There is a lack of turnover in the systems support and business analyst development groups.
4. Emergency changes that bypass the normal control process frequently are deemed necessary.

NO.29 Which of the following IT disaster recovery plans includes a remote site dessgnated for recovery with available space for basic services, such as internet and telecommunications, but does not have servers or infrastructure equipment?

NO.30 Both users and management approve the initial proposal, design specifications, conversion plan, and testing plan of an information system. This is an example of:

NO.31 If Bandit Co. uses the <List A> approach to estimate bad debt expense, the estimated bad debt expense will be <List Be.

NO.32 In computing the loss per share of ordinary shares, cumulative preference dividends not earned should be:

NO.33 The Entity has dividend-payout ratio of:

NO.34 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?

NO.35 If the probability of hot weather, given a hot weather forecast, is 50%, how much would the vendor be willing to pay for the forecast?

NO.36 Maintenance cost at a hospital was observed to increase as activity level increased. The following data was gathered:
Activity Level Maintenance Cost
Month Patient Days Incurred January 5,600 $7,900
February 7,100 $8,500
March 5,000 $7,400
April 6,500 $8,200
May 7,300 $9,100
June 8,000 $9,800
If the cost of maintenance is expressed in an equation, what is the independent variable for this data?

NO.37 If a manufacturer has established a limit on the number of defects that are tolerable in the final assembly of its product, which of the following quality control procedures should be employed?
I. Inspect completed goods for compliance with established tolerances.
II. Review sales returns for defects not detected during the final inspection process.
III. Compare materials and machinery specifications with original product designs.
IV.
Establish a quality circle that includes management and subordinates to discuss labor efficiency.

NO.38 The internal auditor of a bank has developed a multiple regression model which has been
used for a number of gears to estimate the amount of interest income from commercial loans.
During the current year, the auditor applies the model and discovers that the r2 value has decreased dramatically, but the model otherwise seems to be working okay. Which of the following conclusions is justified by the change?

NO.39 A manufacturer ss deciding whether to sell or process materials further. Which of the following costs would be relevant to this decision?

NO.40 The following information relates to the activity of the defined postemployment benefit plan of Twain Publishers, Ltd.

Twain’s expense recognized in the income statement is

NO.41 A company is deciding whether to purchase an automated machine to manufacture one of its products. Expected net cash flows from this decision depend on several factors, interactions among those factors, and the probabilities associated with different levels of those factors. The method that the company should use to evaluate the distribution of net cash flows from this decision and changes in net cash flows resulting from changes in levels of various factors is: