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

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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 bodies makes accounting standards in Australia?

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

2. X was influenced by G Co's audit report and dividend declaration, and decided to invest in the securities of the company. What should X be cautious about before investing in the shares of the company?
X should be aware that

A) a declaration of dividend is the ultimate measure of a company's profitability.
B) the declaration of dividends assures high earnings per share.
C) the auditor's report is influenced by the directors.
D) the auditor's report refers to the company's prior year financials.

3. You assumed the role as the Chairperson of the Board of Directors of Daylight Ltd. As you start to write your first directors' report, which one of the following areas are you not required to include in your report?

A) Details of any dividends paid or proposed.
B) Details regarding any significant changes to Daylight's state of affairs for the year that just ended.
C) Details regarding accounting policies pursued by Daylight in preparation of its financial statements.
D) Review of operations of Daylight during the year just ended and any likely developments in the future that may impact Daylight.

4. According to the Australian Accounting Standards Board, which one of the following is a benefit of adopting International Financial Reporting Standards (IFRSs)?

A) to make it easier for tax authorities to calculate taxes on investors' overseas income
B) to enable the national government to control activities of foreign multinationals
C) to become a resource for developing nations who can easily adopt IFRSs as a full set of standards
D) to increase foreign investors' understanding of local financial reports

5. 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) normative accounting theory
B) historical cost accounting theory
C) positive accounting theory
D) general accounting theory

Solutions: