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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Financial information is reliable if it
I)prefers substance over legal form.
II)is neutral and without any material error.
III)is complete and has been made with prudence.
IV)is understandable to those with no knowledge of accounting.

A) I, II and III only
B) I, III and IV only
C) I, II and IV only
D) II, III and IV only

2. According to the IASB's Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of

A) internal users.
B) employees.
C) management.
D) capital providers.

3. A rules-based approach to standard setting

A) prescribes standards that attempt to cover all eventualities a business may face.
B) ensures there are no conflicts within accounting standards as each issue is handled just once.
C) helps a standard-setting body to prioritise matters.
D) provides a broad framework for standard setting.

4. Which one of the following shows whether the financial statements of a company show a true and fair presentation of the financial performance of the company?

A) Statement of cash flows
B) Auditor's Report
C) Corporate Governance Statement
D) Director's Report

5. Which one of the following is an advantage of current purchasing power accounting?

A) It provides a stable monetary unit that values profit and capital.
B) It enables raw data to be just easily verifiable but not auditable.
C) It provides a clear use of indices which approximates the measurement of value.
D) It supposes that value of net assets clearly reflects general goods and services are bought once assets were released.

Solutions: