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

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

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

3. According to the IASB's Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of

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

4. In applying accounting standards, an entity develops accounting policies that ensure that the financial statements present

A) comparable and accurate financial information to all shareholders.
B) relevant and reliable financial information.
C) relevant and correct financial information to all interested shareholders.
D) understandable and clear financial information to all interested shareholders.

5. Which one of the following is not an Australian Securities Exchange (ASX) principle of good corporate governance?

A) Safeguard the environment.
B) Promote ethical and responsible decision-making.
C) Remunerate fairly and responsibly.
D) Respect the rights of shareholders.

Solutions: