CPA Australia Financial-Accounting-and-Reporting Actual PDF : CPA Financial Accounting and Reporting Exam

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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. In individual countries, Generally Accepted Accounting Principles (GAAP) is primarily a combination of

A) national company law and local stock exchange requirements.
B) company law, accounting standards, local stock exchange requirements and international accounting standards.
C) national company law and national accounting standards.
D) national company law, national accounting standards and local stock exchange requirements.

2. Which of the following represents a principal-agent relationship?
I.
shareholders-auditors
II.
shareholders-management
III.
security exchange-company
IV.
board of directors-employees

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

3. Which of the following statements are correct in the context of accounting concepts and principles?
I)The going concern assumption requires that assets be carried at their cost values.
II)Prudence allows the creation of contingency reserves and more generous provisions.
III)Financial information is considered complete even if it excludes non-material information.
IV)Understandability does not require complex information to be excluded from financial reports.

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

4. The Framework for the Preparation and Presentation of Financial Statements which assists the development of the International Financial Reporting Standards (IFRS) was originally approved by the

A) International Accounting Standards Board (IASB).
B) International Accounting Standards Committee (IASC).
C) International Federation of Accountants (IFAC).
D) IFRS Interpretations Committee (IFRIC).

5. Which one of the following bodies makes accounting standards in Australia?

A) AASB
B) IASB
C) FRC
D) ASIC

Solutions: