IIA-CIA-PART3 practice questions 71–80

1. Question 71 · 336 in bank

   Which of the following best explains why an organization would enter into a capital lease contract?

   • ATo increase the ability to borrow additional funds from creditors.
   • BTo reduce the organization's free cash flow from operations.
   • CTo improve the organization's free cash flow from operations.
   • DTo acquire the asset at the end of the lease period at a price lower than the fair market value.

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   Answer: D

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2. Question 72 · 336 in bank

   Listening effectiveness is best increased by:

   • AResisting both internal and external distractions.
   • BWaiting to review key concepts until the speaker has finished talking.
   • CTuning out messages that do not seem to fit the meeting purpose.
   • DFactoring in biases in order to evaluate the information being given.

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   Answer: A

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3. Question 73 · 336 in bank

   When management uses the absorption costing approach, fixed manufacturing overhead costs are classified as which of the following types of costs?

   • ADirect product costs.
   • BIndirect product costs.
   • CDirect period costs.
   • DIndirect period costs.

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   Answer: B

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4. Question 74 · 336 in bank

   An organization had three large centralized divisions: one that received customer orders for service work; one that scheduled the service work at customer locations; and one that answered customer calls about service problems. These three divisions were restructured into seven regional groups, each of which performed all three functions. One advantage of this restructuring would be:

   • ABetter internal controls.
   • BGreater economies of scale.
   • CImproved work flow.
   • DIncreased specialization.

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   Answer: C

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5. Question 75 · 336 in bank

   Which of the following is a result of implementing an e-commerce system, which relies heavily on electronic data interchange and electronic funds transfer, for purchasing and billing?

   • AHigher cash flow and treasury balances.
   • BHigher inventory balances.
   • CHigher accounts receivable
   • DHigher accounts payable.

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   Answer: A

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6. Question 76 · 336 in bank

   Which of the following focuses on finding statistical relationships in order to create profiles?

   • AProcess mining.
   • BProcess analysis.
   • CData mining.
   • DData analysis.

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   Answer: C

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7. Question 77 · 336 in bank

   Which of the following is a product-oriented definition of a business rather than a market-oriented definition of a business?

   • AWe are a people-and-goods mover.
   • BWe supply energy.
   • CWe make movies.
   • DWe provide climate control in the home.

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   Answer: C

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8. Question 78 · 336 in bank

   A global business organization is selecting managers to post to various international (expatriate) assignments. In the screening process, which of the following traits would be required to make a manager a successful expatriate? 1. Superior technical competence. 2. Willingness to attempt to communicate in a foreign language. 3. Ability to empathize with other people.

   • A1 and 2 only
   • B1 and 3 only
   • C2 and 3 only
   • D1, 2, and 3

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   Answer: C

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9. Question 79 · 336 in bank

   Which of the following controls helps protect externally stored sensitive or confidential data from cyberthreats?

   • ASecure configurations and access controls.
   • BStrong vendor contracts with control reports provided by service organizations.
   • CActive and frequent monitoring of network traffic activities.
   • DFirewalls to block unauthorized processing of transactions.

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   Answer: A

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10. Question 80 · 336 in bank

    According to IIA guidance, which of the following best describes an adequate management (audit) trail application control for the general ledger?

    • AReport identifying data that is outside of system parameters.
    • BReport identifying general ledger transactions by time and individual.
    • CReport comparing processing results with original input.
    • DReport confirming that the general ledger data was processed without error.

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    Answer: C

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IIA-CIA-PART3 practice, question 71. 336 questions available.