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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 would be recognised in the statement of profit or loss and other comprehensive income?

A) employee wages
B) inventory
C) retained earnings
D) prepayment of expenses

2. Financial managers will benefit in a strongly efficient market by

A) having their shareholders be tolerant of low profits if higher profits are expected in the future.
B) being able to decide what information needs to be made available to shareholders.
C) having their shareholders invest more money into expanding the company's operations.
D) being able to take more risks without shareholders' consent.

3. Which one of the following best describes the objective of the International Financial Reporting Standards (IFRS) Foundation?

A) to promote the application, convergence and use of International Financial Reporting Standards (IFRS) as a high quality reporting solution
B) to develop an International regulatory framework in the national jurisdictions of countries that produce accountants
C) to co-ordinate the accounting profession on a global scale by issuing and establishing international standards
D) to guide investors who compare the financial statements of one entity in one country with those of another entity located elsewhere

4. 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.

5. Which one of the following parties provides information to ensure that the financial statements show a true and fair view?

A) shareholders
B) financial Institutions
C) tax consultants
D) directors of the company

Solutions: