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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 would be recognised in the statement of profit or loss and other comprehensive income?

A) inventory
B) employee wages
C) prepayment of expenses
D) retained earnings

2. Which one of the following is an accurate definition of fair value of an asset?

A) The price for which an asset could be sold in an orderly transaction between market participants at the measurement date.
B) The price for which an asset could be sold net of disposal costs.
C) The cost of replacing an asset with an identical item.
D) The amount yet to be written off over the remainder of the asset's useful life.

3. To be relevant, financial information has to
I)be provided in a timely manner.
II)comply with the going concern assumption.
III)have predictive and/or confirmatory value.
IV)exclude computations that are difficult to understand.

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

4. An example of voluntary reporting in Australia is a

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

5. Investors use the audited financial statements of a company to
I)evaluate the company's current return on assets
II)predict the company's market conditions for future years.
III)predict the company's market conditions for future years.
IV)make a judgement on the liquidity and solvency of the company.

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

Solutions: