2022 Valid Financial-Accounting-and-Reporting FREE EXAM DUMPS QUESTIONS & ANSWERS
Free Financial-Accounting-and-Reporting Exam Braindumps CPA Australia Pratice Exam
NEW QUESTION 24
PLO Advertising Ltd (PLO) buys a new stretch limousine for $40 000. A number of individuals have expressed an interest in buying the limousine from PLO for $60 000. The board members decide that the limousine is worth between $65 000 and $70 000. What is the fair value of the limousine?
- A. $70 000
- B. $60 000
- C. $40 000
- D. $65 000
Answer: B
NEW QUESTION 25
An example of voluntary reporting in Australia is a
- A. statement of financial position.
- B. statement of comprehensive income.
- C. sustainability report.
- D. statement of cash flows.
Answer: C
NEW QUESTION 26
Which one of the following statements differentiates semi-strong form efficiency from strong form efficiency in the context of the efficient market hypothesis?
- A. Semi-strong form efficiency addresses operational efficiency whereas strong form efficiency aims to address allocative efficiency.
- B. Semi-strong form efficiency does not reflect knowledge whereas strong form efficiency considers knowledge in addition to publicly available information and past price movements.
- C. Semi-strong form efficiency does not reflect all publicly available information whereas strong form efficiency does incorporate all publicly available information.
- D. Semi-strong form efficiency reflects all past price movements whereas strong form efficiency reflects future share price movements.
Answer: B
NEW QUESTION 27
In a stock market that displays strong efficiency, share prices reflect all available
- A. public information.
- B. information about past changes in share prices.
- C. public and inside information.
- D. information about future expansion plans.
Answer: C
NEW QUESTION 28
A statement of generally accepted theoretical principles which form the frame of reference for financial reporting refers to the
- A. Regulatory Framework.
- B. Generally Accepted Accounting Principles.
- C. Conceptual Framework.
- D. International Financial Reporting Standards.
Answer: C
NEW QUESTION 29
The body that is part of the international standard-setting framework reporting to the International Financial Reporting Standards Foundation (IFRS Foundation) is the
- A. Centre on Transnational Corporations.
- B. International Accounting Standards Board.
- C. International Accounting Standards Committee.
- D. International Accounting Board.
Answer: B
NEW QUESTION 30
Financial information is reliable if it
I)prefers substance over legal form.
II)is neutral and without any material error.
III)is complete and has been made with prudence.
IV)is understandable to those with no knowledge of accounting.
- A. I, II and IV only
- B. II, III and IV only
- C. I, III and IV only
- D. I, II and III only
Answer: D
NEW QUESTION 31
Which one of the following is the correct treatment of sales?
- A. Credit sales are recorded in the receivables ledger prior to posting to the general ledger.
- B. Cash and credit sales are recorded in the receivables ledger prior to posting to the general ledger.
- C. Credit sales are not recorded in the receivables ledger prior to posting to the general ledger.
- D. Cash sales are recorded in the receivables ledger prior to posting to the general ledger.
Answer: A
NEW QUESTION 32
The Framework for the Preparation and Presentation of Financial Statements which assists the development of the International Financial Reporting Standards (IFRS) was originally approved by the
- A. International Accounting Standards Board (IASB).
- B. International Accounting Standards Committee (IASC).
- C. International Federation of Accountants (IFAC).
- D. IFRS Interpretations Committee (IFRIC).
Answer: B
NEW QUESTION 33
In an efficient market, normally if interest rates rise, share prices will
- A. rise since banks invest their increased profits.
- B. fall since investors expect a higher return.
- C. fall in anticipation of a reversal in the interest rate cycle.
- D. rise due to the overall positive sentiment.
Answer: B
NEW QUESTION 34
An element is recognised in the statement of financial position or statement of comprehensive income if
I.
the value of the item can be measured reliably.
II.
the value of the item can be measured accurately.
III.
it is certain that there will be future economic benefits associated with the item.
IV.
it is probable that there will be future economic benefits associated with the item.
Which of the above options are correct?
- A. II and III only
- B. III and IV only
- C. I and III only
- D. I and IV only
Answer: D
NEW QUESTION 35
Which one of the following situations would result in either a new liability being recognised or an existing liability being increased?
- A. At the end of the reporting period, there are unpaid wages.
- B. A company pays only half of an overdue invoice.
- C. A company recognises the depreciation expense for the current period.
- D. A company establishes an asset revaluation reserve.
Answer: A
NEW QUESTION 36
Which one of the following is not a function of the trustees of the International Financial Reporting Standards Foundation (IFRS Foundation)?
- A. providing suggestions on technical matters relating to accounting standards
- B. ensuring the financing of the International Accounting Standards Board (IASB)
- C. appointing the members of the International Accounting Standards Board (IASB)
- D. promoting the application of International Financial Reporting Standards (IFRSs)
Answer: A
NEW QUESTION 37
An agent is answerable under the contract to the agent's principal and must account for the resources of the agent's principal and the money the agent has gained working on the principal's behalf. In the context of agency, this definition describes an agent's
- A. fiduciary duty.
- B. relationship.
- C. accountability.
- D. contract.
Answer: C
NEW QUESTION 38
Which one of the following statements is correct in relation to presenting the financial position of an entity?
- A. Liquidity is the ability to repay long-term financial commitments, whereas solvency is the ability to repay short-term commitments.
- B. Solvency is the availability of total assets over a long-term, while liquidity is the availability of total assets over the short-term to meet financial commitments as they fall due.
. - C. Liquidity represents cash holdings, while solvency is long-term profitability.
- D. Solvency is the availability of cash over the long-term, while liquidity is the availability of funds over the short-term to meet financial commitments as they fall due.
Answer: D
NEW QUESTION 39
In relation to financial statements, the 'true and fair override' indicates that
- A. departure is allowed from accounting standards under specific instances to show a fair presentation.
- B. the true and fair requirement need not be complied with by certain industries.
- C. accounting standards must be complied with under all circumstances.
- D. statements need not always be true and accurate.
Answer: A
NEW QUESTION 40
......
Prepare For Realistic Financial-Accounting-and-Reporting Dumps PDF - 100% Passing Guarantee: https://www.trainingdump.com/CPA-Australia/Financial-Accounting-and-Reporting-practice-exam-dumps.html
Practice Test for Financial-Accounting-and-Reporting Certification Real 2022 Mock Exam: https://drive.google.com/open?id=1wn7bgQhHQYRedb_Scy9Kd1f6otBtmAYC