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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Financial managers will benefit in a strongly efficient market by

A) being able to take more risks without shareholders' consent.
B) having their shareholders invest more money into expanding the company's operations.
C) being able to decide what information needs to be made available to shareholders.
D) having their shareholders be tolerant of low profits if higher profits are expected in the future.

2. A company purchased a machine 10 years ago for $143 890. It is expected that the machine will generate future revenues of $108 495. The machine could be scrapped for $81 232. An equivalent machine in the same condition would cost $94 950 to buy now. What is the deprival value of the asset?

A) $35 395
B) $108 495
C) $94 950
D) $81 232

3. The objective of the International Accounting Standards Board (IASB) is to

A) oversee the standard setting process and International Financial Reporting Standards Advisory Council.
B) provide strategic advice to the International Financial Reporting Standards Advisory Council.
C) enforce International Financial Reporting Standards.
D) set International Financial Reporting Standards.

4. A decrease in assets is most likely to be recognised in the financial report as

A) a change in equity.
B) a liability.
C) revenue earned.
D) an expense.

5. In applying accounting standards, an entity develops accounting policies that ensure that the financial statements present

A) understandable and clear financial information to all interested shareholders.
B) comparable and accurate financial information to all shareholders.
C) relevant and correct financial information to all interested shareholders.
D) relevant and reliable financial information.

Solutions: