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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 181

Import quotas that limit the quantities of goods that a domestic subsidiary can buy from its foreign parent company represent which type of barrier to the parent company?

Correct Answer: C
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Question 182

An entity donated land to a municipal for a park. cost of the land was US $75,000, and the market value at the time of the donation was US $2, as determined by a professional
appraisal if the entity has not chosen to adopt the cost model for- n' r ant of property plant, and equipment subsequent to initial recognition, the journal entry to record the dial of the land is:

Correct Answer: C
An item of PPE is carried at cost minus any accumulated depreciation and impairment losses. Under the allowed alternative treatment an item of PPE may be carried at a revalued amount equal to fair value at the revaluation date minus any subsequent accumulated depreciation and impairment losses_ Land is not depreciated, so it should be carried at its amount. This amount should be determined by a professional appraisal. The revaluation increased the carrying amount and is therefore credited directly to equity a situation surplus. Accordingly, the entry is to debit land and credit revaluation for US $125.000. The entire surplus may be transferred to retained Earnings but not through profit or loss) when the asset is derecognize Upon on the asset should be removed from the balance sheet.
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Question 183

Which of the following financial statement analyses is most useful in determining whether the various expenses of a given entity are higher or lower than industry averages?

Correct Answer: B
Vertical analysis is the expression of each item on a financial statement in a given period in relation to a base figure. On the income statement, each item is stated as a percentage of sales. Thus, the percentages for the entity in question can be compared with industry norms.
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Question 184

Which of the following statements most likely represents a disadvantage for an entity that keeps data files on a server rather than on a manual system?

Correct Answer: B
In a manual system, one individual is usually assigned responsibility for maintaining and safeguarding the records. However, in a server environment, the data files may be subject to change by others without documentation or an indication of who made the changes.
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Question 185

Which of the following errors is not self-correcting over two accounting periods?

Correct Answer: B
A failure to record depreciation must be corrected because the effects of the error do not automatically reverse in future periods. Expenses are understated in the year of the error, but no corresponding overstatement of expenses occurs in later years. An audit of an entity has revealed the following four errors that have occurred but have not been corrected:
1.Inventory at December 31. Year 3: US $40,000, understated
2.Inventory at December 31. Year 4: US $15,000, overstated
3.Depreciation for Year 3: US $7,000, understated
4.Accrued expenses at December 31. Year 4: US $10,000, understated
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