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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. LMN Ltd recently changed the measurement base for their assets. They should I)treat this like a change in an estimate.
II)treat this like a change in the accounting policy.
III)disclose this in the notes to financial statements.

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

2. 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

3. According to the IASB Conceptual Framework, income is an increase in economic benefits in the form of I)inflows.
II)decreases of liabilities.
III)enhancements of assets.
IV)contributions from equity holders.

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

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

5. Which one of the following parties provides information to ensure that the financial statements show a true and fair view?

A) financial Institutions
B) directors of the company
C) tax consultants
D) shareholders

Solutions: