IIA-CIA-Part3 Free Practice Test

- (Exam Topic 1)
An organization's balance sheet indicates that the total asset amount and the total capital stock amount remained unchanged from one year to the next, and no dividends were declared or paid. However, the organization reported a loss of $200,000. Which of the following describes the most likely year-over-year change to the organization's total liabilities and total stockholder equity?

1. A. The total liabilities and total stockholder equity both increased.
2. B. The total liabilities and total stockholder equity both decreased.
3. C. The total liabilities decreased, and the total stockholder equity increased.
4. D. The total liabilities increased, and the total stockholder equity decreased.

Correct Answer: D

- (Exam Topic 1)
Which of the following standards would be most useful in evaluating the performance of a customer-service group?

1. A. The average time per customer inquiry should be kept to a minimum.
2. B. Customer complaints should be processed promptly.
3. C. Employees should maintain a positive attitude when dealing with customers.
4. D. All customer inquiries should be answered within seven days of receipt.

Correct Answer: D

- (Exam Topic 2)
In the years after the mind-service point of a depreciable asset which of the following depreciation methods will result in the highest depreciation expense?

1. A. Sum of the years' digits
2. B. Declining balance
3. C. Double-declining balance
4. D. Straight line

Correct Answer: A

- (Exam Topic 1)
Which of the following describes a typical desktop workstation used by most employees in their daily work?

1. A. Workstation contains software that prevents unauthorized transmission of information into and out of the organization's network.
2. B. Workstation contains software that controls information flow between the organization's network and the Internet.
3. C. Workstation contains software that enables the processing of transactions and is not shared among users of the organization's network.
4. D. Workstation contains software that manages user's access and processing of stored data on the organization's network.

Correct Answer: C

- (Exam Topic 2)
Which of the following situations best applies to an organization that uses a project rather man a process to accomplish its business activities?

1. A. A clothing company designs makes and sells a new item.
2. B. A commercial constructor company is hired to build a warehouse.
3. C. A city department sets up a new firefighter training program.
4. D. A manufacturing organization acquires component parts from a contracted vendor

Correct Answer: B