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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 166

An entity most likely may derecoginize a financial liability if it:

Correct Answer: C
Derecognition of a financial liabilityor a part) occurs only by means of extinguishment.
This condition is satisfied only when the debtor pays the creditor or is legally released from primary responsibility either by the creditor or through the legal process. An extinguishments and derecognition of the old debt and recognition of new debt occurs when the borrower and lender exchange debt instruments with II substantially different terms, that is, when the respective discounted cash flows differ by at least 10%.
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Question 167

An electronic meeting conducted between several parties at remote sites is referred to as:

Correct Answer: D
Conducting an electronic meeting among several parties at remote sites is teleconferencing. It can be accomplished by telephone or electronic mail group communication software. Videoconferencing permits the conferees to see each other on video screens. The practice has grown in recent years as companies have attempted to cut their travel costs.
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Question 168

If Bandit Co. uses the <List A> approach to estimate bad debt expense, the estimated bad debt expense will be <List Be.

Correct Answer: C
Using the income statement approach, the bad debt expense is determined using a percentage of total credit sales. Thus, bad debt expense is US $20,000$400,000 credit sales x 5% estimated bad debt rate).
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Question 169

While auditing a marketing department, the internal auditor discovered that the product life cycle model was used to structure the marketing mix.
The manager has asked the auditor for advice about increasing advertising of various products. During which stage of the life cycle would it be appropriate to advertise that the company's product is the lowest price and best quality of all competitors?

Correct Answer: C
The maturity stage is the ideal time for advertising lower prices and superior quality because this is the period during a product's life when competition is greatest. Due to the availability of many alternatives or substitutes, a firm has reasons to set itself apart. Because price and quality are both concerns of customers during the maturity stage, it is ideal for the firm to differentiate its product by advertising low prices and higher quality.
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Question 170

Which of the following types of accounts must be closed at the end of the period?

Correct Answer: B
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