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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following is the correct treatment of sales?

A) Cash and credit sales are recorded in the receivables ledger prior to posting to the general ledger.
B) 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.

2. XYZ Ltd is listed on the Australian Securities Exchange (ASX). Which one of the following reports is the company required to prepare as a part of its annual financial report?

A) corporate governance statement
B) chairman's statement
C) management commentary
D) sustainability report

3. 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.

4. Which one of the following is not a principal motivation for creative accounting?

A) benefits from shares and share options
B) public good
C) bonus-related pay
D) personal incentives

5. 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) II, III and IV only
B) I, III and IV only
C) I, II and III only
D) I, II and IV only

Solutions: