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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

Question 1

According to the Australian Accounting Standards Board, which one of the following is a benefit of adopting International Financial Reporting Standards (IFRSs)?

A. to enable the national government to control activities of foreign multinationals
B. to become a resource for developing nations who can easily adopt IFRSs as a full set of standards
C. to increase foreign investors' understanding of local financial reports
D. to make it easier for tax authorities to calculate taxes on investors' overseas income

Question 2

The chairperson of XYZ Company is concerned about the readability of the annual financial report that is about to be published on its website. XYZ Company is obliged to comply with International Financial Reporting Standards, and the report contains all of the required financial statements, the auditor's report, corporate governance statements, declarations of accounting policy, explanatory notes and a section that addresses the company's corporate social responsibility program.
The chairperson is wondering whether the report can be condensed. The issue that is concerning the chairperson is known as

A. the agency costs of monitoring.
B. information overload.
C. the costs of social responsibility reporting.
D. the cost of compliance.

Question 3

Venturer Ltd has received fees from venture capital activities and has engaged you as the accountant to prepare the financial report for 31 December 20X0. Unable to find a specific reference to venture capital fees in either the conceptual framework or the accounting standards, you establish the appropriate accounting treatment by

A. referring to the fundamental accounting assumptions and conventions.
B. using your professional judgment and referring to the conceptual framework's definitions and recognition criteria.
C. using your professional judgment and referring to generally accepted accounting principles and practice.
D. consulting with the International Accounting Standards Board.

Question 4

An agent is answerable under the contract to the agent's principal and must account for the resources of the agent's principal and the money the agent has gained working on the principal's behalf. In the context of agency, this definition describes an agent's

A. fiduciary duty.
B. contract.
C. accountability.
D. relationship.

Question 5

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. profitability of the business
C. financial capability of the business
D. operating capability of the business

Solutions: