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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 266

What are revenue tariffs designed to do?

Correct Answer: B
Revenue tariffs are usually applied to products that are not produced domestically. Their purpose is to provide the government with tax revenue.
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Question 267

In mergers and acquisitions, which of the following is an example of a horizontal combination?

Correct Answer: B
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Question 268

An individual had taxable income of US $23,r_ir_ir' per year and paid US $8,000 in income tax. The individual's taxable income then increased to US $30,000 per year resulting in a US $10,000 income tax liability. The personal tax system being applied to this individual is:

Correct Answer: B
The average t rate of the individual has decreased from 34.8% US $8,000 - $23,000) to 33.3% (US $10.000 Under a regressive tax system, the average tax rate falls as income rises, although the amount of tax paid may rise.
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Question 269

Which of the following is a primary objective of the theory of constraints?

Correct Answer: A
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Question 270

At December 31 of Year 1, an entity had a provision of US $40,000 for the "Estimated
Liability under Warranties" account. During Year 2, the entity sold 1,000 new units under warranties reliably estimated at US $100 per unit. The actual parts and labor warranty expenditures for Year 2 were US $90,000. Warranty expense for Year 2 should be

Correct Answer: D
Recognition of provisions is appropriate when the entity has a legal or constructive present obligation resulting from a past event (called an obligating event), it is probable that an outflow of economic benefits will be necessary to settle the obligation, and its amount can be reliably estimated. Accordingly, a provision should be recognized for warranty expense in the period in which the matching revenue is recorded. Thus, the debit to warranty expense and the credit to provision for warranty expense in Year 2 is US $100,0001,000 units x $100).
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