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NEW QUESTION 34 Which of the following costs would be incurred in an inventory stockout?

• A. Lost customers, safety stock, and backorder.
• B. Lost sales, lost customers, and safety stock.
• C. Lost sales, lost customers, and backorder.
• D. Lost sales, safety stock, and backorder.

Answer: C   NEW QUESTION 35 An objective of financial reporting is

• A. Evaluating management results compared with standards.
• B. Providing information useful to investors, creditors, donors, and other users for decision making.
• C. Providing information on compliance with established procedures.
• D. Assessing the adequacy of internal control.

Answer: B Explanation: The objectives of financial reporting are concerned with the underlying goals and purposes of accounting. They are to provide information that1) is useful to those making investment and credit decisions, assuming that those individuals have a reasonable understanding of business and economic activities:2) is helpful to current and potential investors and creditors and other users in assessing the amount timing, and uncertainty of future cash flows; and3) discloses economic resources claims to those resources, and the changes therein.   NEW QUESTION 36 At December 31, Year 2, an entity had the following obligations that were expected to be refinanced: The 17% note payable was issued on October 1, Year 1, and matures on July 1, Year 3. No loan agreement existing at the balance sheet date provides for refinancing. The 15% note payable was issued on May 1, Year 1. and matures on May 1, Year 3. On February 1, Year 3, the entire US $140,000 balance of the 17% note payable was refinanced by issuance of a long-term debt instrument. On February 7, Year 3, the entity entered into a noncancelable agreement with a lender to refinance the 15% note payable on a long-term basis. The financial statements were authorized to be issued on March 1, Year 3. The total amount of obligations that may be properly excluded from current liabilities on the entity's December 31, Year 2, balance sheet is:

• A. US $140,000
• B. US $0
• C. US $340,000
• D. US $200,000

Answer: B Explanation: Financial liabilities are current if they are due within 12 months even if1) the original term was for more than 12 months and2) an agreement to refinance on a long-term basis was completed after the balance sheet and before the issuance of the financial statements. Thus, both are current. The amount excluded from current liabilities is US $0.   NEW QUESTION 37 If a bank's activities are categorized under such departments as community banking, institutional banking, and agricultural banking, what kind of departmentalization is being utilized?

• A. Customer departmentalization.
• B. Product departmentalization.
• C. Process departmentalization.
• D. Functional departmentalization.

Answer: A   NEW QUESTION 38 ...... BTW, DOWNLOAD part of Exam4Free IIA-CIA-Part3 dumps from Cloud Storage: https://drive.google.com/open?id=1_sDjxuslVm9GRscy7lUzRGSwVQaLCDyJ