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IIA IIA-CIA-Part3 Based on Real Exam Environment

Business Knowledge for Internal Auditing Questions and Answers

Question 21

An organization's account for office supplies on hand had a balance of $9,000 at the end of year one. During year two. The organization recorded an expense of $45,000 for purchasing office supplies. At the end of year two. a physical count determined that the organization has $11 ,500 in office supplies on hand. Based on this Information, what would he recorded in the adjusting entry an the end of year two?

Options:

A.

A debit to office supplies on hand for S2.500

B.

A debit to office supplies on hand for $11.500

C.

A debit to office supplies on hand for $20,500

D.

A debit to office supplies on hand for $42,500

Question 22

A small software development firm designs and produces custom applications for businesses. The application development team consists of employees from multiple departments who all report to a single project manager. Which of the following organizational structures does this situation represent?

Options:

A.

Functional departmentalization.

B.

Product departmentalization

C.

Matrix organization.

D.

Divisional organization

Question 23

Which of the following common quantitative techniques used in capital budgeting is best associated with the use of a table that describes the present value of an annuity?

Options:

A.

Cash payback technique.

B.

Discounted cash flow technique: net present value.

C.

Annual rate of return

D.

Discounted cash flow technique: internal rate of return.

Question 24

A manufacturer ss deciding whether to sell or process materials further. Which of the following costs would be relevant to this decision?

Options:

A.

Incremental processing costs, incremental revenue, and variable manufacturing expenses.

B.

Joint costs, incremental processing costs, and variable manufacturing expenses.

C.

Incremental revenue, joint costs, and incremental processing costs.

D.

Variable manufacturing expenses, incremental revenue, and joint costs