IIA Updated IIA-CIA-Part3 Exam Questions and Answers by preston

The capital accounts of the partners should be increased by the original cost of the contributed equipment.

The capital accounts should be increased using a weighted average based on the current percentage of ownership.

No action is necessary as the capital account of each partner was increased by the correct amount.

The capital accounts of the partners should be increased by the fair market value of their contribution.

Standards used for evaluation and control are determined at local subsidiaries, not set by headquarters

Orders, commands, and advice are sent to the subsidiaries from headquarters

People of local nationality are developed for the best positions within their own country

There is a significant amount of collaboration between headquarters and subsidiaries

To increase the ability to borrow additional funds from creditors

To reduce the organization’s free cash flow from operations

To improve the organization’s free cash flow from operations

To acquire the asset at the end of the lease period at a price lower than the fair market value

A clothing company designs, makes, and sells a new item

A commercial construction company is hired to build a warehouse

A city department sets up a new firefighter training program

A manufacturing organization acquires component parts from a contracted vendor