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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. The concept of transparency in corporate governance means that listed companies should disclose

A) their future strategy.
B) only mandatory information by management.
C) confidential issues relating to competitors.
D) material information that affects decisions.

2. A decrease in assets is most likely to be recognised in the financial report as

A) a change in equity.
B) a liability.
C) an expense.
D) revenue earned.

3. Which one of the following statements regarding the IASB's Conceptual Framework for Financial Reporting is correct?

A) It specifies the concepts that underlie the preparation and presentation of only consolidated financial statements.
B) It specifies the concepts that underlie the preparation and presentation of special purpose financial statements.
C) It overrides any local or international accounting standard.
D) It specifies the concepts that underlie the preparation and presentation of general purpose financial statements.

4. An example of voluntary reporting in Australia is a

A) statement of cash flows.
B) sustainability report.
C) statement of comprehensive income.
D) statement of financial position.

5. PLO Advertising Ltd (PLO) buys a new stretch limousine for $40 000. A number of individuals have expressed an interest in buying the limousine from PLO for $60 000. The board members decide that the limousine is worth between $65 000 and $70 000. What is the fair value of the limousine?

A) $70 000
B) $65 000
C) $40 000
D) $60 000

Solutions: