Free Financial-Accounting-and-Reporting Sample Questions and 100% Cover Real Exam Questions (Updated 100 Questions)
Download Real CPA Australia Financial-Accounting-and-Reporting Exam Dumps Test Engine Exam Questions
NEW QUESTION # 52
Which one of the following is not a function of the trustees of the International Financial Reporting Standards Foundation (IFRS Foundation)?
- A. appointing the members of the International Accounting Standards Board (IASB)
- B. promoting the application of International Financial Reporting Standards (IFRSs)
- C. providing suggestions on technical matters relating to accounting standards
- D. ensuring the financing of the International Accounting Standards Board (IASB)
Answer: C
NEW QUESTION # 53
A company's financial report is compliant with International Financial Reporting Standards. Where in the report would an investor find the amount of money received by the company for investment activities?
- A. statement of financial position
- B. statement of comprehensive income
- C. statement of cash flows
- D. statement of changes in equity
Answer: C
NEW QUESTION # 54
Which one of the following statements differentiates semi-strong form efficiency from strong form efficiency in the context of the efficient market hypothesis?
- A. Semi-strong form efficiency addresses operational efficiency whereas strong form efficiency aims to address allocative efficiency.
- B. Semi-strong form efficiency does not reflect knowledge whereas strong form efficiency considers knowledge in addition to publicly available information and past price movements.
- C. Semi-strong form efficiency reflects all past price movements whereas strong form efficiency reflects future share price movements.
- D. Semi-strong form efficiency does not reflect all publicly available information whereas strong form efficiency does incorporate all publicly available information.
Answer: B
NEW QUESTION # 55
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
Answer: A
NEW QUESTION # 56
You assumed the role as the Chairperson of the Board of Directors of Daylight Ltd. As you start to write your first directors' report, which one of the following areas are you not required to include in your report?
- A. Details regarding any significant changes to Daylight's state of affairs for the year that just ended.
- B. Details regarding accounting policies pursued by Daylight in preparation of its financial statements.
- C. Details of any dividends paid or proposed.
- D. Review of operations of Daylight during the year just ended and any likely developments in the future that may impact Daylight.
Answer: B
NEW QUESTION # 57
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
Answer: D
NEW QUESTION # 58
Which one of the following statements is not correct in respect of manual accounting systems?
- A. It is easy to make corrections.
- B. They are bulky to store compared to computer systems.
- C. Productivity in manual systems is lower than computer systems.
- D. Risk of error is greater and the quality of outputs is inferior.
Answer: A
NEW QUESTION # 59
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 preparing a financial report for shareholders
- C. the cost of engaging an external auditor
- D. the cost of employing an internal auditor
Answer: A
NEW QUESTION # 60
Variations in the regulatory regime over financial reporting in different countries is attributable to a range of differences including
- A. company structures, ownership, local culture and the level of development of the country.
- B. consumer laws, taxation requirements and the extent to which the country has adopted international financial reporting standards.
- C. the extent to which the country has adopted international financial reporting standards and the requirements of local securities exchange.
- D. the needs of investors, creditors, employees, lending institutions and taxation authorities.
Answer: A
NEW QUESTION # 61
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. fiduciary duty.
- C. contract.
- D. relationship.
Answer: A
NEW QUESTION # 62
Generally accepted accounting practice recognises revenue when
- A. customers order goods.
- B. cash is received for the goods.
- C. goods are dispatched to the customer.
- D. goods are produced.
Answer: C
NEW QUESTION # 63
When business managers seek detailed information about the profitability or efficiency of different parts of their operations, they would find the most useful information in
- A. various management accounting reports.
- B. the annual financial report.
- C. financial statements as specified by IAS 1 Presentation of Financial Statements.
- D. the company's accounting policies.
Answer: A
NEW QUESTION # 64
Which one of the following is an advantage of current purchasing power accounting?
- A. It enables raw data to be just easily verifiable but not auditable.
- B. It provides a stable monetary unit that values profit and capital.
- C. It provides a clear use of indices which approximates the measurement of value.
- D. It supposes that value of net assets clearly reflects general goods and services are bought once assets were released.
Answer: B
NEW QUESTION # 65
Which one of the following is a benefit of developing financial reporting standards using a conceptual framework?
- A. The financial statements based on these standards would be error-free.
- B. The interpretation of non-financial information is made easier.
- C. A financial reporting environment based on standardised principles would be created.
- D. The interpretation of financial reporting standards by anybody would be easy.
Answer: C
NEW QUESTION # 66
A multinational company is converting the methodology of reporting by its subsidiaries in various countries to make it uniform with the requirements of the International Financial Reporting Standards (IFRS). While changing the reporting methodologies, accountants have to apply certain judgments.
Which one of the following is not a valid motivation for decision making on reporting methodologies?
- A. to present the financial statements in a manner that is understood by most users
- B. to present the company's financial performance in the most favourable way
- C. to comply with the information demands of government bodies in home country
- D. to be consistent with the methodologies followed in the home country of the company
Answer: B
NEW QUESTION # 67
Which one of the following reports sets out how directors have run a company and if they implemented proper procedures to deal with matters like accountability, audits, directors' roles and responsibilities, internal controls and relations with shareholders?
- A. chairman's statement
- B. director's report
- C. corporate governance statement
- D. corporate social responsibility report
Answer: C
NEW QUESTION # 68
The objective of the International Accounting Standards Board (IASB) is to
- A. enforce International Financial Reporting Standards.
- B. set International Financial Reporting Standards.
- C. oversee the standard setting process and International Financial Reporting Standards Advisory Council.
- D. provide strategic advice to the International Financial Reporting Standards Advisory Council.
Answer: B
NEW QUESTION # 69
According to the IASB Conceptual Framework, income is an increase in economic benefits in the form of I)inflows.
II)decreases of liabilities.
III)enhancements of assets.
IV)contributions from equity holders.
- A. I, III and IV only
- B. I, II and IV only
- C. II, III and IV only
- D. I, II and III only
Answer: D
NEW QUESTION # 70
......
New Financial-Accounting-and-Reporting exam dumps Use Updated CPA Australia Exam: https://www.dumpsactual.com/Financial-Accounting-and-Reporting-actualtests-dumps.html
Verified Financial-Accounting-and-Reporting Dumps Q&As - Financial-Accounting-and-Reporting Test Engine with Correct Answers: https://drive.google.com/open?id=1kLLXCatf8DrLjYmjXHlNbaWbh1pJnTUI
