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

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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. According to the IASB's Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of

A) employees.
B) internal users.
C) management.
D) capital providers.

2. In the context of a regulatory framework, a principles-based system

A) provides a theoretical basis with broad terms of reference.
B) removes any element of judgement by providing clear requirements.
C) is a rule-driven approach.
D) attempts to cover specific eventualities.

3. 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) normative accounting theory
D) general accounting theory

4. In relation to financial statements, the 'true and fair override' indicates that

A) statements need not always be true and accurate.
B) accounting standards must be complied with under all circumstances.
C) departure is allowed from accounting standards under specific instances to show a fair presentation.
D) the true and fair requirement need not be complied with by certain industries.

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 IV only
D) I, II and III only

Solutions: