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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. 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) the company's accounting policies.
B) the annual financial report.
C) financial statements as specified by IAS 1 Presentation of Financial Statements.
D) various management accounting reports.

2. Which one of the following situations would result in either a new liability being recognised or an existing liability being increased?

A) A company establishes an asset revaluation reserve.
B) A company recognises the depreciation expense for the current period.
C) At the end of the reporting period, there are unpaid wages.
D) A company pays only half of an overdue invoice.

3. Restrictions on the scope of a specific accounting standard are stated in

A) that specific standard.
B) the IASB's Conceptual Framework.
C) the explanatory materials provided by the AASB.
D) various Statements of Accounting Concepts (SACs) issued by the AASB.

4. 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 cash flows
B) statement of comprehensive income
C) statement of financial position
D) statement of changes in equity

5. Which of the following represents a principal-agent relationship?
I.
shareholders-auditors
II.
shareholders-management
III.
security exchange-company
IV.
board of directors-employees

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

Solutions: