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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 quality of information in and across financial statements.
C) It provides the required accounting information to all necessary shareholders.
D) It provides flexibility in the way accounting information is presented to users.

2. Current cost accounting reflects an approach to capital maintenance based on maintaining which one of the following?

A) profitability of the business
B) financial capability of the business
C) cost of assets in the business
D) operating capability of the business

3. You assumed the role as the Chairperson of the Board of Directors of Daylight Ltd. As you start to write your first directors' report, which one of the following areas are you not required to include in your report?

A) Details of any dividends paid or proposed.
B) Details regarding accounting policies pursued by Daylight in preparation of its financial statements.
C) Review of operations of Daylight during the year just ended and any likely developments in the future that may impact Daylight.
D) Details regarding any significant changes to Daylight's state of affairs for the year that just ended.

4. A company sold some old operating equipment from its factory. After depreciation was accounted for, a small gain on sale was recorded. According to the revised IAS 1 Presentation of Financial Statements, this transaction will be shown as a separate item 'gain on sale of equipment'. This item will be shown in the statement of

A) changes in equity.
B) financial position.
C) comprehensive income.
D) cash flow.

5. The concept of transparency in corporate governance means that listed companies should disclose

A) material information that affects decisions.
B) their future strategy.
C) confidential issues relating to competitors.
D) only mandatory information by management.

Solutions: