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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 a benefit of developing financial reporting standards using a conceptual framework?

A) The interpretation of financial reporting standards by anybody would be easy.
B) A financial reporting environment based on standardised principles would be created.
C) The financial statements based on these standards would be error-free.
D) The interpretation of non-financial information is made easier.

2. The accounting policies used by companies must result in financial reports that are

A) easy to read.
B) signed by the CEO or equivalent.
C) comparable with previous years' reports.
D) independently audited.

3. In individual countries, Generally Accepted Accounting Principles (GAAP) is primarily a combination of

A) company law, accounting standards, local stock exchange requirements and international accounting standards.
B) national company law and national accounting standards.
C) national company law and local stock exchange requirements.
D) national company law, national accounting standards and local stock exchange requirements.

4. Which one of the following examples would not represent an agency cost?

A) the cost of employing an internal auditor
B) the cost of engaging an external auditor
C) the cost of preparing a financial report for shareholders
D) the cost of preparing a cost-benefit report for a new project

5. A rules-based approach to standard setting

A) prescribes standards that attempt to cover all eventualities a business may face.
B) ensures there are no conflicts within accounting standards as each issue is handled just once.
C) provides a broad framework for standard setting.
D) helps a standard-setting body to prioritise matters.

Solutions: