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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 statements is not correct in respect of manual accounting systems?

A) Risk of error is greater and the quality of outputs is inferior.
B) Productivity in manual systems is lower than computer systems.
C) They are bulky to store compared to computer systems.
D) It is easy to make corrections.

2. Financial information is reliable if it
I)prefers substance over legal form.
II)is neutral and without any material error.
III)is complete and has been made with prudence.
IV)is understandable to those with no knowledge of accounting.

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

3. Which one of the following examples would not represent an agency cost?

A) the cost of employing an internal auditor
B) the cost of preparing a cost-benefit report for a new project
C) the cost of preparing a financial report for shareholders
D) the cost of engaging an external auditor

4. Which one of the following parties provides information to ensure that the financial statements show a true and fair view?

A) financial Institutions
B) shareholders
C) directors of the company
D) tax consultants

5. According to the IASB's Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of

A) employees.
B) management.
C) capital providers.
D) internal users.

Solutions: