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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2025-07-07.q379 Dumps
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Question 231

The major feature of zero-based budgeting ZBB) is that it:

Correct Answer: B
ZBB is a planning process in which each manager must justify his/her department's full budget for each period. The purpose is to encourage periodic reexamination of all costs in the hope that some can be reduced or eliminated.
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Question 232

On August I, Year 1, an entity issued s-year bonds with a face amount of US $10 million. The funds carry a stated interest rate of 11)35 and interest is payable annually on July 31.
Which is the appropriate classification of bonds payable and the related accrued interest payable on the December 31, Year 5, balance sheet?

Correct Answer: A
A current liability is an obligation that is expected to be settled within the normal operating cycle or is due to be settled within 12 months of the balance sheet date. Any other liability is noncurrent. Some current liabilities are included in the working capital employed in the normal operation cycle, e.g., trade payables and accrued employee operating costs. Current liabilities not settled within the normal operating cycle include the current part of interest-bearing debt, dividends income taxes, and bank overdrafts. Given that the bonds payable and interest payable are due within 12 months, they should be classified and current.
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Question 233

A call option on an ordinary share is more valuable when there is a lower:

Correct Answer: B
The lower the exercise price, the more valuable the call option. The exercise price is the
price at which the call holder has the right to purchase the underlying share.
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Question 234

Operational management in the IT department has introduced performance evaluation policies that are linked to employees achieving continuing education hours. This activity is designed to prevent which of the following conditions?

Correct Answer: D
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Question 235

According to the Standards, which of the following is based on the assertion that the quality of an organization's risk management process should improve with time?

Correct Answer: C
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