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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. PLO Advertising Ltd (PLO) buys a new stretch limousine for $40 000. A number of individuals have expressed an interest in buying the limousine from PLO for $60 000. The board members decide that the limousine is worth between $65 000 and $70 000. What is the fair value of the limousine?

A) $40 000
B) $65 000
C) $70 000
D) $60 000

2. 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 and II only
B) I only
C) II and III only
D) III only

3. Which one of the following is not a principal motivation for creative accounting?

A) public good
B) bonus-related pay
C) benefits from shares and share options
D) personal incentives

4. Financial markets have achieved operational efficiency when

A) past records are used to predict the future prices of goods.
B) the price of stocks and shares are available accurately and quickly.
C) the costs of financial transactions are kept as low as possible.
D) the cost of transactions is a reflection of the actual cost incurred.

5. Which one of the following statements is correct?

A) A statement of financial position explains the reasons for movement of assets and liabilities through the accounting period.
B) Liabilities are future obligations that will cause outflow of resources embodying economic benefits.
C) Assets used for long-term operations are shown under working capital in the statement of financial position.
D) Current and non-current assets are shown as separate classifications in the statement of financial position.

Solutions: