Free CPA Australia Financial-Accounting-and-Reporting Practice Test & Real Exam Questions
Which one of the following parties provides information to ensure that the financial statements show a true and fair view?
Correct Answer: B
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Which one of the following includes social reporting guidelines?
Correct Answer: D
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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?
Correct Answer: A
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Which one of the following is not an advantage of accounting regulation?
Correct Answer: C
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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?
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?
Correct Answer: B
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Which form of capital market efficiency exists when share prices on the stock market reflect all information whether public or not?
Correct Answer: D
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Which of the following represents a principal-agent relationship?
I.
shareholders-auditors
II.
shareholders-management
III.
security exchange-company
IV.
board of directors-employees
I.
shareholders-auditors
II.
shareholders-management
III.
security exchange-company
IV.
board of directors-employees
Correct Answer: D
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In relation to financial statements, the 'true and fair override' indicates that
Correct Answer: D
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Which one of the following is an accurate definition of fair value of an asset?
Correct Answer: C
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Which one of the following is not a principal motivation for creative accounting?
Correct Answer: B
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