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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 an objective of the International Federation of Accountants (IFAC)?

A) to issue new international financial reporting standards (IFRS)
B) to provide advice on accounting standards to the OECD
C) to provide direction to the Financial Accounting Standards Board (FASB)
D) to establish high quality professional standards in accountancy

2. Which one of the following is a benefit of developing financial reporting standards using a conceptual framework?

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

3. A rules-based approach to standard setting

A) prescribes standards that attempt to cover all eventualities a business may face.
B) ensures there are no conflicts within accounting standards as each issue is handled just once.
C) helps a standard-setting body to prioritise matters.
D) provides a broad framework for standard setting.

4. Which one of the following is the correct treatment of sales?

A) Cash sales are recorded in the receivables ledger prior to posting to the general ledger.
B) Credit sales are not recorded in the receivables ledger prior to posting to the general ledger.
C) Credit sales are recorded in the receivables ledger prior to posting to the general ledger.
D) Cash and credit sales are recorded in the receivables ledger prior to posting to the general ledger.

5. Which one of the following is not a principal motivation for creative accounting?

A) bonus-related pay
B) public good
C) benefits from shares and share options
D) personal incentives

Solutions: