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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Generally accepted accounting practice recognises revenue when

A) customers order goods.
B) cash is received for the goods.
C) goods are produced.
D) goods are dispatched to the customer.

2. A statement of comprehensive income reports on

A) financial performance.
B) changes in financial position.
C) solvency.
D) financial position.

3. The objective of the International Accounting Standards Board (IASB) is to

A) provide strategic advice to the International Financial Reporting Standards Advisory Council.
B) set International Financial Reporting Standards.
C) oversee the standard setting process and International Financial Reporting Standards Advisory Council.
D) enforce International Financial Reporting Standards.

4. JK Ltd intentionally over-valued its closing inventories to increase profitability for the year 20X8. This would help them to better price a planned share issue in 20X9. By doing this they have breached the concept of

A) completeness.
B) substance over form.
C) understandability.
D) neutrality.

5. Historical cost accounting provides financial information that is

A) reliable but may not be relevant for decision making.
B) relevant and reliable for decision making.
C) relevant for decision making.
D) relevant but may not be reliable for decision making.

Solutions: