Updated Oct-2023 Pass IIA-CIA-Part3 Exam – Real Practice Test Questions [Q110-Q124]

Q110. At December 31, Year 1, an entity had the following equity accounts:

Each of the 40,000 ordinary shares outstanding was issued at a price of US $26. On January 2, Year 2, 2,000 shares were reacquired for US $30 per share. The cost method is used in accounting for these treasury shares. Which of the following correctly describes the effect of the acquisition of the treasury shares?

Q111. Which of the following is not a component of physical distribution?

Q112. In a traditional ERP system, the receipt of a customer order may result in:
I. Customer tracking of the order’s progress
II. Automatic replenishment of inventory by a supplier
III. Hiring or reassigning of employees
IV.
Automatic adjustment of output schedules

Q113. One department of an organization, Final Assembly, is purchasing subcomponents from another department, Materials Fabrication. The price that will be charged to Final Assembly by Materials Fabrication is to be determined. Outside market prices for the subcomponents are available. Which of the following is the most correct statement regarding a market-based transfer price?

Q114. A firm must decide the mix of production of Product X and Product Y. There are only two resources used in the two products, resources A and B. Data related to the two products is given in the following table:

What is the appropriate objective function to maximize profit?

Q115. The following information and diagram apply to a project:

The earliest completion time for the project is:

Q116. IAS 34, interim Financial Reporting, provides guidelines for interim reporting stating that enterprises:

Q117. The US dollar amount of the costs of quality classified as preventive costs for the manufacturing firm would be:

Q118. The practice of recording advance payments from customers as a liability is an example of applying the:

Q119. An organization has recorded the following profit and expenses: Profit before interest and tax $200,000
Sales $2,300,000
Purchases of materials $700,000
Interest expenses $30,000
If the value-added tax (VAT) rate is 20 percent and the corporate tax rate is 30 percent, which of the following is the amount of VAT that the organization has to pay?

Q120. What is the best course of action to take if a program takes longer than usual to load or execute?

Q121. Government subsidies of the domestic production of military weapons is an example of what rationale for government intervention in trade?

Q122. Technological uncertainty, subsidy, and spin-offs are usually characteristics of:

Q123. In an order-entry system in which manually-prepared source documents are entered online for immediate processing, which of the following is an example of an appropriate input-output control?

Q124. The measurement basis most often used to report a long-term payable representing a commitment to pay money at a determinable future date is: