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

SectionObjectives
Topic 1: Financial Statements- Preparation and presentation
  • 1. Statement of profit or loss and other comprehensive income
    • 2. Statement of cash flows
      • 3. Statement of financial position
        Topic 2: Financial Reporting Framework- Conceptual framework for financial reporting
        • 1. Recognition and measurement principles
          • 2. Qualitative characteristics of financial information
            Topic 3: Consolidated Financial Statements- Group accounting
            • 1. Non-controlling interests
              • 2. Goodwill recognition and impairment
                • 3. Business combinations
                  Topic 4: Liabilities and Equity- Financial instruments and obligations
                  • 1. Borrowing costs
                    • 2. Equity instruments
                      • 3. Provisions and contingencies
                        Topic 5: Financial Statement Analysis and Interpretation- Analysis techniques
                        • 1. Trend and comparative analysis
                          • 2. Ratio analysis
                            Topic 6: Revenue Recognition- Revenue from contracts with customers
                            • 1. Timing of revenue recognition
                              • 2. Identification of performance obligations
                                Topic 7: Assets- Asset recognition and measurement
                                • 1. Property, plant and equipment
                                  • 2. Impairment of assets
                                    • 3. Inventories
                                      • 4. Intangible assets

                                        CPA Australia CPA Financial Accounting and Reporting Sample Questions:

                                        Which one of the following methods is not used for 'creative accounting'?

                                        • A. aggressive debt management
                                        • B. window dressing
                                        • C. off balance sheet financing
                                        • D. profit smoothing
                                        Reveal Solution  Discussion  0

                                        Correct Answer: A  🗳️

                                        Which one of these is a key principle of good corporate governance?

                                        • A. restriction of shareholders' rights in decision-making
                                        • B. non-disclosure of directors' agency relationship with the company
                                        • C. effective management of the employees of the company
                                        • D. effective communication with shareholders
                                        Reveal Solution  Discussion  0

                                        Correct Answer: D  🗳️

                                        Which one of the following is an accurate definition of fair value of an asset?

                                        • A. The price for which an asset could be sold in an orderly transaction between market participants at the measurement date.
                                        • B. The price for which an asset could be sold net of disposal costs.
                                        • C. The amount yet to be written off over the remainder of the asset's useful life.
                                        • D. The cost of replacing an asset with an identical item.
                                        Reveal Solution  Discussion  0

                                        Correct Answer: A  🗳️

                                        An agent is answerable under the contract to the agent's principal and must account for the resources of the agent's principal and the money the agent has gained working on the principal's behalf. In the context of agency, this definition describes an agent's

                                        • A. accountability.
                                        • B. relationship.
                                        • C. contract.
                                        • D. fiduciary duty.
                                        Reveal Solution  Discussion  0

                                        Correct Answer: A  🗳️

                                        Which one of the following statements is correct?

                                        • A. A statement of financial position explains the reasons for movement of assets and liabilities through the accounting period.
                                        • B. Assets used for long-term operations are shown under working capital in the statement of financial position.
                                        • C. Liabilities are future obligations that will cause outflow of resources embodying economic benefits.
                                        • D. Current and non-current assets are shown as separate classifications in the statement of financial position.
                                        Reveal Solution  Discussion  0

                                        Correct Answer: D  🗳️

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