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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. 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) III and IV only
B) I and III only
C) II and III only
D) I and II only

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

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

3. JK Ltd intentionally over-valued its closing inventories to increase profitability for the year 20X8. This would help them to better price a planned share issue in 20X9. By doing this they have breached the concept of

A) substance over form.
B) neutrality.
C) understandability.
D) completeness.

4. Which of the following are the stated objectives of the International Accounting Standards Board (IASB)?
I)Enforce accounting standards.
II)Develop accounting standards.
III)Work for convergence of accounting standards.

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

5. According to the Australian Accounting Standards Board, which one of the following is a benefit of adopting International Financial Reporting Standards (IFRSs)?

A) to enable the national government to control activities of foreign multinationals
B) to increase foreign investors' understanding of local financial reports
C) to become a resource for developing nations who can easily adopt IFRSs as a full set of standards
D) to make it easier for tax authorities to calculate taxes on investors' overseas income

Solutions: