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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 an advantage of current purchasing power accounting?

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

2. According to the IASB's Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of

A) management.
B) internal users.
C) employees.
D) capital providers.

3. 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) Cash sales are recorded in the receivables ledger prior to posting to the general ledger.
D) Credit sales are not recorded in the receivables ledger prior to posting to the general ledger.

4. According to the IASB Conceptual Framework, income is an increase in economic benefits in the form of I)inflows.
II)decreases of liabilities.
III)enhancements of assets.
IV)contributions from equity holders.

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

5. In relation to financial statements, the 'true and fair override' indicates that

A) the true and fair requirement need not be complied with by certain industries.
B) accounting standards must be complied with under all circumstances.
C) statements need not always be true and accurate.
D) departure is allowed from accounting standards under specific instances to show a fair presentation.

Solutions: