IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 1:

  Hospitals document reserves as that portion of the accounts receivables that they hope to collect but have some doubt about its collectability. Rather than book these amounts as income, hospitals will "____________" These amounts until paid.

  A. Bad debts
  B. Reserve
  C. Income expense
  D. All (Allowance for loans and lease losses)
  B. Reserve

• Question 2:

  When one buys a cash instrument, for example 100 shares of ABC Inc., the payoff is linear (disregarding the impact of dividends). If share are purchased at $50 and the price appreciated to $75, we have ________ on a mark-to-mark basis.

  A. Made $2500
  B. Lost $2500
  C. Made $2500
  D. None of these
  A. Made $2500

• Question 3:

  "An incoming wire transfer with instruction to pay the beneficiary upon presentment of proper identification. The beneficiary usually does not maintain a checking or savings account with the paying financial institution." This definition refers to:

  A. Receiving Bank
  B. Remitter
  C. PUPID
  D. Repetitive transfer
  C. PUPID

• Question 4:

  Insurance Brokers work for:

  A. Insured and insurance company
  B. Insured rather than an insurance company
  C. Brokerage houses
  D. None of them
  B. Insured rather than an insurance company

• Question 5:

  A major function of NAIC is to encourage __________ among state insurance departments through the development of model bills and regulations.

  A. Consistency
  B. Uniformity
  C. Regularity
  D. All of these
  B. Uniformity

• Question 6:

  A commercial or consumer loan made to foreign branch of a large bank is also considered as:

  A. A Federal Government loan
  B. International loan
  C. Financial insurance loan
  D. Term loan
  B. International loan

• Question 7:

  Personal trust accounts may be:

  A. Living or testamentary
  B. Revocable or irrevocable
  C. Both of these
  D. None of these
  C. Both of these

• Question 8:

  Insider rule/s:

  A. They are not allowed to profit from their information by trading a stock before that information is public.
  B. They are generally barred from short selling.
  C. Must file a personnel statement with SEC and report all personal security transactions in their corporation no later than 10 days after the end of the calendar month in which they occur.
  D. Both A and C
  D. Both A and C

• Question 9:

  Group permanent life insurance often used:

  A. To fund group pension plans
  B. To provide life insurance coverage that will continue after retirement
  C. As a variant of permanent life insurance
  D. All of these
  D. All of these

• Question 10:

  ___________ help bring performance back into compliance, or address problems that have been identified such as employee grievance system, employee performance approvals, or an administrative appeal's process.

  A. Correction controls
  B. Detective controls
  C. Preventive controls
  D. None of These
  A. Correction controls