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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 statements is correct?

A) Accounting standards provide the basic knowledge upon which the conceptual framework is developed.
B) Australian accounting standards are based on the US GAAP.
C) Accounting standards prescribe the possible accounting treatments.
D) Accounting standards are developed and maintained using a consultative process with the OECD.

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

3. Which one of the following examples would not represent an agency cost?

A) the cost of employing an internal auditor
B) the cost of preparing a cost-benefit report for a new project
C) the cost of engaging an external auditor
D) the cost of preparing a financial report for shareholders

4. Which one of the following practices is not considered creative accounting?

A) window dressing
B) trading in derivatives
C) profit smoothing
D) aggressive earnings management

5. To be relevant, financial information has to
I)be provided in a timely manner.
II)comply with the going concern assumption.
III)have predictive and/or confirmatory value.
IV)exclude computations that are difficult to understand.

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

Solutions: