CPA Australia Financial-Accounting-and-Reporting Actual Tests : 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. Which one of the following is a benefit of developing financial reporting standards using a conceptual framework?

A) A financial reporting environment based on standardised principles would be created.
B) The interpretation of non-financial information is made easier.
C) The financial statements based on these standards would be error-free.
D) The interpretation of financial reporting standards by anybody would be easy.

2. 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

3. The objective of the International Accounting Standards Board (IASB) is to

A) enforce International Financial Reporting Standards.
B) oversee the standard setting process and International Financial Reporting Standards Advisory Council.
C) set International Financial Reporting Standards.
D) provide strategic advice to the International Financial Reporting Standards Advisory Council.

4. 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) employees.
C) capital providers.
D) internal users.

5. 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) II, III and IV only
B) I, II and IV only
C) I, II and III only
D) I, III and IV only

Solutions: