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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2024-06-15.q282 Dumps
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Question 136

Buyer-based pricing involves:

Correct Answer: C
Buyer-based pricing involves basing prices on the product's perceived value rather than on the seller's cost. Nonprice variables in the marketing mix augment the perceived value. For example, a cup of coffee may have a higher price at an expensive restaurant than at a fast food outlet.
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Question 137

In computing the loss per share of ordinary shares, cumulative preference dividends not earned should be:

Correct Answer: B
When preference shares are cumulative, the dividend, whether earned or not, is deducted from profit or loss from continuing operations and profit or loss, or added to any loss for the year, in computing earnings or loss. When preference shares are noncumulative, an adjustment is made for dividends declared. If the dividend is cumulative only if earned, no adjustment is necessary except to the extent of available income: that is, the preference dividends accumulate only to the extent of profit or loss.
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Question 138

In which of the following plans is an employee most likely to find guidance on action and performance standards?

Correct Answer: A
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Question 139

An entity has 100.000 outstanding ordinary shares with a market value of US $20 per share. Dividends of US $2 per share were paid in the current year, and the entity has a dividend-payout ratio of 40%. The price-to-earnings ratio of the entity is:

Correct Answer: B
The P-E ratio equals the share price divided by EPS. If the dividends per share equaled US $2 and the dividend-payout ratio was 40%, EPS must have been US $5 $2 - .4). Accordingly, the P-E ratio is 4 US $20 share price - $5 EPS). Entity A has 50,000 ordinary shares and 10,000 preference shares outstanding at the start of the year on January 1. The preference shares are entitled to a US $2 per share annual cash dividend, payable on December 31. The entity had profit of US $1517,000 for the year. On April 1, the entity issued 15,000 additional ordinary shares for cash. Entity B. is identical to entity A in all respects except that it had 75.000 ordinary shares outstanding for the entire year.
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Question 140

A service entity keeps its accounting records on a cash basis. During the recent year the entity collected US $600,000 from customers. The following information is also available:

What was the amount of service revenue for the year on an accrual basis?

Correct Answer: C
The amount of service revenue for the year on an accrual basis equals US $645,000$600,000 cash collected - $15,000 unearned revenue + $60,000 increase in accounts receivable).
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