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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Historical cost accounting provides financial information that is

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

2. Which one of these is a disadvantage of a conceptual framework?

A) It replaces the established principles.
B) It mandates the formats of various financial statements.
C) A single framework is not suitable for all users of financial statements.
D) It increases the chances of political interference in the development of accounting standards.

3. Which one of the following is an advantage of current purchasing power accounting?

A) It enables raw data to be just easily verifiable but not auditable.
B) It provides a stable monetary unit that values profit and capital.
C) It provides a clear use of indices which approximates the measurement of value.
D) It supposes that value of net assets clearly reflects general goods and services are bought once assets were released.

4. A rules-based approach to standard setting

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

5. An example of voluntary reporting in Australia is a

A) statement of cash flows.
B) sustainability report.
C) statement of comprehensive income.
D) statement of financial position.

Solutions: