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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 not an advantage of accounting regulation?

A) It instils public confidence in the accounting system employed in commerce and industry.
B) It provides flexibility in the way accounting information is presented to users.
C) It provides the required accounting information to all necessary shareholders.
D) It provides quality of information in and across financial statements.

2. Which one of the following countries has the view that Generally Accepted Accounting Principles (GAAP) refers to accounting practices which are regarded as permissible by the accounting profession?

A) United Kingdom
B) Australia
C) Canada
D) United States of America

3. Which one of the following shows whether the financial statements of a company show a true and fair presentation of the financial performance of the company?

A) Statement of cash flows
B) Corporate Governance Statement
C) Director's Report
D) Auditor's Report

4. Which one of the following statements is correct in relation to presenting the financial position of an entity?

A) Liquidity is the ability to repay long-term financial commitments, whereas solvency is the ability to repay short-term commitments.
B) Solvency is the availability of cash over the long-term, while liquidity is the availability of funds over the short-term to meet financial commitments as they fall due.
C) Liquidity represents cash holdings, while solvency is long-term profitability.
D) Solvency is the availability of total assets over a long-term, while liquidity is the availability of total assets over the short-term to meet financial commitments as they fall due.
.

5. According to IASB's Conceptual Framework, an expense is a decrease in economic benefits in the form of
I.
outflows.
II.
decreases of assets.
III.
incurrences of liabilities.
IV.
contributions to equity holders.

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

Solutions: