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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2025-10-13.q454 Dumps
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Question 91

If an entity has a higher dividend-payout ratio. then. if all else is equal, it will have a:

Correct Answer: A
The higher the dividend-payout ratio, the sooner retained earnings are exhausted and the entity must seek external financing. Assuming the name investments are undertaken, the result is a higher marginal coot of capital because lower-cost capital sources will be used up earlier.
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Question 92

If the manufacturing company uses the weighted-average method, the equivalent units for direct materials in Department 2 for the current month would be:

Correct Answer: C
The weighted-average method does not distinguish between work done currently and in the prior period. Given that materials are added when units are 80% complete, that ending work-in-process is 60% complete, and that goods are inspected when they are 100% complete, and assuming that equivalent units are calculated for normal spoilage, the total weighted-average equivalent units for direct materials equals 81,500 80.000 units transferred + 1.500 normally spoiled units). A manufacturing company employs a process cost system. The company's product passes through both Department 1 and Department 2 in order to be completed. Conversion costs are incurred uniformly throughout the process in Department 2. The direct material', added in Department 2 when conversion is 80% complete. This direct material is a preservative that does not change the volume. Spoiled units are discovered at the final inspection and are recognized then for costing purpose The physical flow of units for the current month is presented below.
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Question 93

Which of the following best describes a market signal?

Correct Answer: C
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Question 94

Which of the following classes of securities are listed in order from lowest risk/opportunity for return to highest risk/opportunity for return?

Correct Answer: A
The general principle is that risk and return are directly correlated. Corporate first mortgage bonds are less risky than income bonds or shares because they are secured by specific property. In the event of default, the bondholders can have the property sold to satisfy their claims. Holders of first mortgages have rights paramount to those of any other parties, such as holders of second mortgages. Income bonds pay interest in the event the corporation earns income. Thus, holders of income bonds have less risk than shareholders because meeting the condition makes payment of interest mandatory. Preference shareholders ro_0icc dividends only if they are declared, and the directors usually have complete discretion in this matter Alai. shareholders have claims junior to those of debit holders if the entity is liquidated.
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Question 95

An internal auditor is evaluating an organization's business continuity management program According to the guidance on IT. which of the following tests would best demonstrate the ability to perform Key processes without significant problems?

Correct Answer: A
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