IIA IIA Certifications IIA-CIA-PART3-3P Questions & Answers

• Question 311:

  A key advantage of developing a computer application by using the prototyping approach is that it:

  A. Does not require testing for user acceptance.

  B. Allows applications to be portable across multiple system platforms.

  C. Is less expensive since it is self-documenting.

  D. Better involves users in the design process.

  Correct Answer: D

• Question 312:

  Which of the following is a strategy that organizations can use to stimulate innovation?

  1) Source from the most advanced suppliers. 2) Establish employee programs that reward initiative. 3) Identify best practice competitors as motivators. 4) Ensure that performance targets are always achieved.

  A. 1 and 3 only

  B. 2 and 4 only

  C. 1, 2, and 3 only

  D. 1, 2, 3, and 4

  Correct Answer: C

• Question 313:

  Which of the following stages of group development is associated with accepting team responsibilities?

  A. Forming stage.

  B. Performing stage.

  C. Norming stage.

  D. Storming stage.

  Correct Answer: C

• Question 314:

  Unsecured loans are loans:

  A. That do not have to be repaid for over one year.

  B. That appear to be too risky for most lenders to consider.

  C. Granted on the basis of a company's credit standing.

  D. Backed by mortgaged assets.

  Correct Answer: C

• Question 315:

  Which of the following is a key characteristic of a zero-based budget?

  A. A zero-based budget provides estimates of costs that would be incurred under different levels of activity.

  B. A zero-based budget maintains focus on the budgeting process.

  C. A zero-based budget is prepared each year and requires each item of expenditure to be justified.

  D. A zero-based budget uses input from lower-level and middle-level managers to formulate budget plans.

  Correct Answer: C

• Question 316:

  Which of the following statements about slack time and milestones are true?

  1) Slack time represents the amount of time a task may be delayed without delaying the entire project.

  2) A milestone is a moment in time that marks the completion of the project's major deliverables.

  3) Slack time allows the project manager to move resources from one task to another to ensure that the

  project is finished on time.

  4) A milestone requires resource allocation and needs time to be completed.

  A. 1 and 4 only

  B. 2 and 3 only

  C. 1, 2, and 3 only

  D. 1, 2, 3, and 4

  Correct Answer: C

• Question 317:

  Which of the following is useful for forecasting the required level of inventory?

  1) Statistical modeling.

  2) Information about seasonal variations in demand.

  3) Knowledge of the behavior of different business cycles.

  4) Pricing models linked to seasonal demand.

  A. 1 and 2 only

  B. 2 and 3 only

  C. 1, 2, and 3 only

  D. 1, 2, 3, and 4

  Correct Answer: C

• Question 318:

  An organization has recorded the following profit and expenses:

  Profit before interest and tax

  $200,000

  Sales

  $2,300,000

  Purchases of materials

  $700,000

  Interest expenses

  $30,000

  If the value-added tax (VAT) rate is 20 percent and the corporate tax rate is 30 percent, which of the

  following is the amount of VAT that the organization has to pay?

  A. $34,000

  B. $51,000

  C. $60,000

  D. $320,000

  Correct Answer: D

• Question 319:

  An organization's balance sheet indicates that the total asset amount and the total capital stock amount remained unchanged from one year to the next, and no dividends were declared or paid. However, the organization reported a loss of $200,000. Which of the following describes the most likely year-over-year change to the organization's total liabilities and total stockholder equity?

  A. The total liabilities and total stockholder equity both increased.

  B. The total liabilities and total stockholder equity both decreased.

  C. The total liabilities decreased, and the total stockholder equity increased.

  D. The total liabilities increased, and the total stockholder equity decreased.

  Correct Answer: D

• Question 320:

  Under a value-added taxing system:

  A. Businesses must pay a tax only if they make a profit.

  B. The consumer ultimately bears the cost of the tax through higher prices.

  C. Consumer savings are discouraged.

  D. The amount of value added is the difference between an organization's sales and its cost of goods sold.

  Correct Answer: B