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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 countries has the view that Generally Accepted Accounting Principles (GAAP) refers to accounting practices which are regarded as permissible by the accounting profession?

A) Australia
B) United States of America
C) United Kingdom
D) Canada

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) independently audited.
D) comparable with previous years' reports.

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) Review of operations of Daylight during the year just ended and any likely developments in the future that may impact Daylight.
D) Details regarding accounting policies pursued by Daylight in preparation of its financial statements.

4. JK Ltd intentionally over-valued its closing inventories to increase profitability for the year 20X8. This would help them to better price a planned share issue in 20X9. By doing this they have breached the concept of

A) substance over form.
B) understandability.
C) neutrality.
D) completeness.

5. In relation to financial statements, the 'true and fair override' indicates that

A) the true and fair requirement need not be complied with by certain industries.
B) departure is allowed from accounting standards under specific instances to show a fair presentation.
C) accounting standards must be complied with under all circumstances.
D) statements need not always be true and accurate.

Solutions: