Free CPA Australia Financial-Accounting-and-Reporting Practice Test & Real Exam Questions

Exam Code/Number: Financial-Accounting-and-Reporting
Exam Name/Title: CPA Financial Accounting and Reporting Exam
Certification Provider: CPA Australia
Corresponding Certification: CPA Foundation Program

Exam Questions: 100
Updated On: Jul 06, 2026

Question #41

The amount of cash or cash equivalents that could currently be obtained by selling an asset in an orderly disposal, refers to which basis of measurement?

A. historical cost

B. current cost

C. present value

D. realisable value

Discussion 0

Correct Answer: D Vote an answer

Question #42

The body that is part of the international standard-setting framework reporting to the International Financial Reporting Standards Foundation (IFRS Foundation) is the

A. International Accounting Standards Board.

B. Centre on Transnational Corporations.

C. International Accounting Standards Committee.

D. International Accounting Board.

Discussion 0

Correct Answer: A Vote an answer

Question #43

Which one of the following statements is correct?

A. Accounting standards are developed and maintained using a consultative process with the OECD.

B. Australian accounting standards are based on the US GAAP.

C. Accounting standards prescribe the possible accounting treatments.

D. Accounting standards provide the basic knowledge upon which the conceptual framework is developed.

Discussion 0

Correct Answer: C Vote an answer

Question #44

Which one of the following reports sets out how directors have run a company and if they implemented proper procedures to deal with matters like accountability, audits, directors' roles and responsibilities, internal controls and relations with shareholders?

A. director's report

B. corporate governance statement

C. chairman's statement

D. corporate social responsibility report

Discussion 0

Correct Answer: B Vote an answer

Question #45

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. contract.

B. accountability.

C. fiduciary duty.

D. relationship.

Discussion 0

Correct Answer: B Vote an answer

Question #46

Restrictions on the scope of a specific accounting standard are stated in

A. various Statements of Accounting Concepts (SACs) issued by the AASB.

B. the explanatory materials provided by the AASB.

C. that specific standard.

D. the IASB's Conceptual Framework.

Discussion 0

Correct Answer: C Vote an answer

Question #47

Which one of these is a disadvantage of a conceptual framework?

A. It replaces the established principles.

B. It mandates the formats of various financial statements.

C. It increases the chances of political interference in the development of accounting standards.

D. A single framework is not suitable for all users of financial statements.

Discussion 0

Correct Answer: D Vote an answer

Question #48

What is the difference between positive and normative accounting theories?

A. Positive accounting theory explains what should occur.

B. Normative accounting theory explains what should occur instead of predicting what is expected to occur.

C. Normative accounting theory specifies the prediction rules for items.

D. Normative accounting theory predicts what is expected to occur rather than explaining what should occur.

Discussion 0

Correct Answer: B Vote an answer

Question #49

Which one of the following statements regarding the IASB's Conceptual Framework for Financial Reporting is correct?

A. It specifies the concepts that underlie the preparation and presentation of general purpose financial statements.

B. It specifies the concepts that underlie the preparation and presentation of only consolidated financial statements.

C. It specifies the concepts that underlie the preparation and presentation of special purpose financial statements.

D. It overrides any local or international accounting standard.

Discussion 0

Correct Answer: A Vote an answer

Question #50

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.

Discussion 0

Correct Answer: B Vote an answer

Download Free CPA Australia Financial-Accounting-and-Reporting Demo

Simply submit your e-mail address below to get started with our free demo of your CPA Australia Financial-Accounting-and-Reporting exam.