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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 246

Which of the following criteria would be most useful to a sales department manager in evaluating the performance of the manager's customer-service group?

Correct Answer: D
A criterion that requires all customer inquiries to be answered within 7 days of receipt permits accurate measurement of performance. The quantitative and specific nature of the appraisal using this standard avoids the vagueness, subjectivity, and personal bias that may afflict other forms of personnel evaluations.
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Question 247

A total interruption of processing throughout a distributed information technology system can be minimized through the use of:

Correct Answer: B
An advantage of distributed processing is fault tolerant, that is, the ability to continue processing at all site opt a nonfunctioning one.
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Question 248

The estimated demand for pretzels at the next home football game using a deterministic approach based on the most likely outcome is:

Correct Answer: C
A deterministic approach assumes that a value is known with certainty. If that value is deemed to be the most likely outcome, assumed demand will be 5,000 pretzels, the volume with the highest probability (35%).
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Question 249

An entity has US $400 of current assets, composed of US $200 of cash, US $100 of accounts receivable, and US $100 of inventory. The entity has US $200 of long-term debt, US $100 of accounts payable, and US $75 of notes payable. The notes payable are due in 6 months. The acid-test ratio, to two decimal places, is:

Correct Answer: C
The acid-test ratio equals current assets US $400) minus inventories US $100), divided by current liabilities US $100 + $75 = US $175), or 1.71.
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Question 250

An entity purchases US $150,000 of inputs from other entities and incurs US $500,000 of labor costs in manufacturing its products. It also incurs US $100,000 of interest expense. The entity sells all of its output for US $2.5 million. Rather than paying income tax, the entity must pay a 25% value-added tax. How much tax will be due for this year's activities?

Correct Answer: C
The value added is the difference between the value of the output and the value of the purchased inputs. Value-added tax payable equals the value-added tax rate times value added, or US $587,500 [($2,500,000 $150,000) x .25].
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