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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2023-01-15.q275 Dumps
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Question 156

An entity average of inventory US $4,000 in sales per day and is paid on an average within 30 days of the sale. After they receive their invoke, 55% of the customers pay by check, while the remaining 45% pay by credit card. Approximately how much would the entity show in accounts receivable on its balance sheet on any given date?

Correct Answer: B
If sales are US $400 per day, and customers pay in 30 days. 30 days of sales are outstanding, or US $120,000. Whether customers pay by credit card or cash collection requires 30 days.
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Question 157

The critical path for any project is the path that exhibits which of the following characteristics?

Correct Answer: D
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Question 158

Which one of the following is least likely to be recommended by the auditor when an EDIEFT system is being designed?

Correct Answer: D
One of the benefits of an EDI-EFT system is that it can provide remote access at any time from any place if telecommunications links are available. However, appropriate controls should prevent unauthorized access. A multinational company has an agreement with a value-added network VAN) that provides the encoding and communications transfer for the company's electrons.. data interchange EDI) and electronic funds transfer EFT) transactions. Before transfer of data to the VAN, the company performs online preprocessing of the transactions. The internal auditor is responsible for assessing preprocessing controls. In addition, the agreement between the company and the VAN states that the internal auditor is allowed toe :amine and report on the controls in place at the VAN on an annual basis. The contract specifies that access to the VAN can occur on a surprise basis during the second or third quarter of the company's fiscal year. This p n I was -hosen so it would not interfere with processing during the VAN's peak transaction periods. This provision was riot reviewed with internal auditing. The annual audit plan approved by the board of directors specifies that a full audit would be done during the current year.
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Question 159

A project is expected to result in the following adjustments over the next year:
Cash sales increase by US $400,000.
Expensesexcept depreciation) increase by US $180,000
Depreciation increases by US $80,000.
Assume the corporate tax rate is 34%. The total relevant net cash flows during that year are:

Correct Answer: C
The increase in pre-tax profit is US $140,000$400,000 cash sales increase - $180,000 nondepreciation expenses increase - $80,000 depreciation). Thus, taxes will increase by US $47,600$140,000 x 34%), and the increase in net cash inflows will be US $172,400$400,000 - $180,000 - $47,600).
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Question 160

Refer to the exhibit.
If the profit margin of an organization decreases, and all else remains equal, which of the following describes how the "Funds Needed" line in the graph below will shift?

Correct Answer: C
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