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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

Question 1

Generally accepted accounting practice recognises revenue when

A. cash is received for the goods.
B. goods are dispatched to the customer.
C. customers order goods.
D. goods are produced.

Question 2

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

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

Question 3

In an efficient market, normally if interest rates rise, share prices will

A. rise since banks invest their increased profits.
B. fall in anticipation of a reversal in the interest rate cycle.
C. rise due to the overall positive sentiment.
D. fall since investors expect a higher return.

Question 4

A statement of comprehensive income reports on

A. solvency.
B. financial position.
C. changes in financial position.
D. financial performance.

Question 5

Which one of these is a disadvantage of a conceptual framework?

A. It increases the chances of political interference in the development of accounting standards.
B. It mandates the formats of various financial statements.
C. It replaces the established principles.
D. A single framework is not suitable for all users of financial statements.

Solutions: