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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following describes the key advantage of the manual system of accounting?

A) Processing is maintained at a reasonable speed even while dealing with large volumes of data.
B) A thorough understanding of the business can be gained through it.
C) The quality of output is not necessarily an issue.
D) Corrections are easily managed as updating or recreating the whole document is not difficult.

2. Which one of the following bases of measurement is used to implement an approach to capital maintenance based on maintaining the operating capability of a business?

A) deprival value
B) fair value
C) current value
D) current purchasing power

3. 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.

4. Which one of the following statements is correct in relation to presenting the financial position of an entity?

A) Solvency is the availability of total assets over a long-term, while liquidity is the availability of total assets over the short-term to meet financial commitments as they fall due.
.
B) Liquidity is the ability to repay long-term financial commitments, whereas solvency is the ability to repay short-term commitments.
C) Solvency is the availability of cash over the long-term, while liquidity is the availability of funds over the short-term to meet financial commitments as they fall due.
D) Liquidity represents cash holdings, while solvency is long-term profitability.

5. Which one of the following includes social reporting guidelines?

A) Global Reporting Initiative (GRI)
B) International Accounting Standards (IAS)
C) Generally Accepted Accounting Principles (GAAP)
D) International Financial Reporting Standards (IFRS)

Solutions: