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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 establish high quality professional standards in accountancy
C) to provide advice on accounting standards to the OECD
D) to provide direction to the Financial Accounting Standards Board (FASB)

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

3. 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, III and IV only
B) II, III and IV only
C) I, II and IV only
D) I, II and III only

4. Published financial statements are regulated by

A) accounting and legal rules to ensure the provision of relevant and reliable financial information to shareholders.
B) rules to ensure the provision of consistent financial information to investors.
C) shareholders who specify the framework for the provision of consistent and comparable financial information for decision-making.
D) International Financial Reporting Standards to ensure the provision of useful financial information to shareholders.

5. Which one of the following is not an advantage of accounting regulation?

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

Solutions: