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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. To be relevant, financial information has to
I)be provided in a timely manner.
II)comply with the going concern assumption.
III)have predictive and/or confirmatory value.
IV)exclude computations that are difficult to understand.

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

2. Restrictions on the scope of a specific accounting standard are stated in

A) the explanatory materials provided by the AASB.
B) various Statements of Accounting Concepts (SACs) issued by the AASB.
C) the IASB's Conceptual Framework.
D) that specific standard.

3. Which one of the following contributes to an efficient capital market?

A) information about the stock market can be obtained cheaply
B) stock markets ensuring that companies do not overcharge for their products
C) stock markets being managed by directors of companies that are listed on the stock market
D) having stock markets in every country

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

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

5. As per the International Accounting Standards Board conceptual framework, which of the following holds the primary responsibility for preparing and presenting financial statements?
I)owners
II)auditors
III)directors

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

Solutions: