Free Access IIA.IIA-CIA-Part3.v2023-01-04.q110 Practice Test (Page 12)

Question 51

Which of the following is an indicator of liquidity that is more dependable than working capital?

A.Inventory turnover.

B.Average collection period

C.Acid-test (quick) ratio

D.Current ratio.

Question 52

Which of the following statements is true regarding user developed applications (UDAs) and traditional IT applications?

A.A UDA usually includes system documentation to illustrate its functions, and IT-developed applications typically do not require such documentation.

B.UDAs arid traditional JT applications typically follow a similar development life cycle

C.IT testing personnel usually review both types of applications thoroughly to ensure they were developed properly.

D.Unlike traditional IT applications. UDAs typically are developed with little consideration of controls.

Question 53

An organization has a declining inventory turnover but an increasing gross margin rate. Which of the following statements can best explain this situation?

A.he organization's operating expenses are increasing.

B.The organization's inventory is overstated.

C.The organization is experiencing inventory theft.

D.The organization has adopted just-in-time inventory.

Question 54

Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic cate interchange?

A.A Large volume of custom purchases

B.A just-in-time purchasing environment

C.A variable volume sensitive to material cost

D.A currently inefficient purchasing process

Question 55

According to IIA guidance, which of the following links computers and enables them to -communicate with each other?

A.Networks

B.Database system

C.Application program code

D.Operating system

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