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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 accurate definition of fair value of an asset?

A) The amount yet to be written off over the remainder of the asset's useful life.
B) The cost of replacing an asset with an identical item.
C) The price for which an asset could be sold in an orderly transaction between market participants at the measurement date.
D) The price for which an asset could be sold net of disposal costs.

2. Which one of the following is not an advantage of accounting regulation?

A) It provides the required accounting information to all necessary shareholders.
B) It provides quality of information in and across financial statements.
C) It provides flexibility in the way accounting information is presented to users.
D) It instils public confidence in the accounting system employed in commerce and industry.

3. 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.

4. Investors use the audited financial statements of a company to
I)evaluate the company's current return on assets
II)predict the company's market conditions for future years.
III)predict the company's market conditions for future years.
IV)make a judgement on the liquidity and solvency of the company.

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

5. The IASB evaluates the merits of adding a potential item to its agenda mainly by reference to the needs of

A) investors.
B) tax agencies.
C) suppliers.
D) regulatory authorities.

Solutions: