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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. 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 auditor's report refers to the company's prior year financials.
C) the declaration of dividends assures high earnings per share.
D) the auditor's report is influenced by the directors.

2. Current cost accounting reflects an approach to capital maintenance based on maintaining which one of the following?

A) financial capability of the business
B) operating capability of the business
C) cost of assets in the business
D) profitability of the business

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

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

4. Which of the following are the stated objectives of the International Accounting Standards Board (IASB)?
I)Enforce accounting standards.
II)Develop accounting standards.
III)Work for convergence of accounting standards.

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

5. The ability of a company to pay its bills when and as they fall due is a measure of

A) compliance with the conceptual framework.
B) solvency.
C) the true and fair view of the financial report.
D) economic value.

Solutions: