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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 these is a key principle of good corporate governance?

A) non-disclosure of directors' agency relationship with the company
B) restriction of shareholders' rights in decision-making
C) effective management of the employees of the company
D) effective communication with shareholders

2. What is the difference between positive and normative accounting theories?

A) Normative accounting theory predicts what is expected to occur rather than explaining what should occur.
B) Positive accounting theory explains what should occur.
C) Normative accounting theory explains what should occur instead of predicting what is expected to occur.
D) Normative accounting theory specifies the prediction rules for items.

3. LMN Ltd recently changed the measurement base for their assets. They should I)treat this like a change in an estimate.
II)treat this like a change in the accounting policy.
III)disclose this in the notes to financial statements.

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

4. 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) Auditor's Report
C) Corporate Governance Statement
D) Director's Report

5. Which of the following statements are correct in the context of accounting concepts and principles?
I)The going concern assumption requires that assets be carried at their cost values.
II)Prudence allows the creation of contingency reserves and more generous provisions.
III)Financial information is considered complete even if it excludes non-material information.
IV)Understandability does not require complex information to be excluded from financial reports.

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

Solutions: