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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2022-03-14.q256 Dumps
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Question 71

Which of the following is true concerning HTML?

Correct Answer: C
HTML is the most popular language for authoring Web pages. It is hardware and software independent, which means that it can be read by several different applications and on many different kinds of computer operating systems. HTML uses tags to mark information for proper display on Web pages.
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Question 72

Focusing on customers, promoting innovation, learning new philosophies, driving out fear, and providing extensive training are all elements of a major change in organizations. These elements are aimed primarily at:

Correct Answer: B
TOM is a comprehensive approach to quality. It treats the pursuit of quality as a basic organizational function that is as important as production or marketing. TOM is the continuous pursuit of quality in every aspect of organizational activities through a philosophy of doing it right the first time, employee training and empowerment, promotion of teamwork, improvement of processes, and attention to satisfaction of customers, both internal and external. TOM emphasizes the supplier's relationship with the customer, identifies customer needs, and recognizes that everyone in a process is at some time a customer or supplier of someone else, either inside or outside of the organization.
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Question 73

The marketing department of a company is deciding on the price to charge for a key product. In setting this price, marketing needs to consider the price that a major competitor will charge for a similar product because the competitor's price will affect the demand for the company's product. Similarly, in setting its price, the competitor will consider what the company will charge. What is an appropriate mathematical technique for analyzing such a decision?

Correct Answer: A
Game (or decision) theory is a mathematical approach to decision making when confronted with an enemy or competitor. Games are classified according to the number of players and the algebraic sum of the payoffs. In a two-person game, if the payoff is given by the loser to the winner, the algebraic sum is zero and the game is called a zero-sum game. If it is possible for both players to profit, however, the game is a positive-sum game. Mathematical models have been developed to select optimal strategies for certain simple games.
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Question 74

Which of the following does not provide operational assurance that a computer system is operating properly?

Correct Answer: C
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Question 75

On January 31, Year 3, a company prepaid the US $72,000 rental fee for a parking lot it leases. The rental fee covered a 3-year period beginning February 1, Year 3. What is the effect of this transaction on the December 31 Year 3, financial statements for each of the following?

Correct Answer: B
The US $72,000 rental fee should be recognized as expense evenly over the 36-month duration of the lease. In Year 3, US $22,000 should be deferred to current expenses [(US $72,000 36 months) x 11 months], and US $50,000 should be deferred as prepaid expense. On January 1. a new landscaping firm. Bandit Co. acquired a fleet of vehicles, all the necessary tools and equipment. and a parking and storage facility. It began operations immediately. It is now the end of the first year of operations, and the first set of year-end financial statements are being prepared decisions have to be made regarding the appropriate accounting and reporting practices for this company. Relevant information for several of these items is described in the following list of transactions and events: At year-end the parking and storage facility that was purchased for US $150.000 has a fair value of US $250.000 The physical flow of inventory is first in, first out, and the cost of materials has risen steadily over the year. To promote sales for the coming year, maintenance contracts were sold in December at very reasonable prices, provided that the customers paid cash. On April 1, the company arranged a US $100,000 10% bank loan. Interest payments of US $5,000 are due on October 1 and April 1 of each year during the 5-year term of the loan. During the first year of operations, the company experienced a 5% bad debt rate on credit sales None of the bad debts are expected to be recovered, given that 5% i s the industry average level of bad debts. Total credit sales for the year were U $400,000. The year-end balance of accounts receivable includes uncollected overdue accounts of US $100,000. Half of the uncollected overdue amounts are estimated to be uncollectible.
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