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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 bases of measurement is used to implement an approach to capital maintenance based on maintaining the operating capability of a business?

A) fair value
B) current value
C) current purchasing power
D) deprival value

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

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

3. Financial managers will benefit in a strongly efficient market by

A) being able to take more risks without shareholders' consent.
B) being able to decide what information needs to be made available to shareholders.
C) having their shareholders invest more money into expanding the company's operations.
D) having their shareholders be tolerant of low profits if higher profits are expected in the future.

4. 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) III and IV only
C) II and III only
D) I and II only

5. An element is recognised in the statement of financial position or statement of comprehensive income if
I.
the value of the item can be measured reliably.
II.
the value of the item can be measured accurately.
III.
it is certain that there will be future economic benefits associated with the item.
IV.
it is probable that there will be future economic benefits associated with the item.
Which of the above options are correct?

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

Solutions: