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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

Question 1

Which one of the following bodies makes accounting standards in Australia?

A. FRC
B. IASB
C. ASIC
D. AASB

Question 2

Which accounting theory is best described by the statement 'An approach to accounting is one where a theory is thought of as a body of knowledge that explains and attempts to predict actual accounting practice'?

A. positive accounting theory
B. historical cost accounting theory
C. general accounting theory
D. normative accounting theory

Question 3

According to IASB's Conceptual Framework, an expense is a decrease in economic benefits in the form of
I.
outflows.
II.
decreases of assets.
III.
incurrences of liabilities.
IV.
contributions to equity holders.

A. I, II and III only
B. II, III and IV only
C. I, III and IV only
D. I, II and IV only

Question 4

The International Accounting Standards Board's Conceptual Framework for Financial Reporting for the preparation and presentation of financial statements is concerned with the information needs of most users, but not for each possible user.
Which one of the following stakeholders would not be one of the users that the Conceptual Framework is concerned about?

A. potential investors in the company
B. governments and regulatory bodies
C. members of the public who have small investment holdings in the company
D. a company's executive management

Question 5

Which one of the following contributes to an efficient capital market?

A. stock markets being managed by directors of companies that are listed on the stock market
B. having stock markets in every country
C. stock markets ensuring that companies do not overcharge for their products
D. information about the stock market can be obtained cheaply

Solutions: