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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 parties provides information to ensure that the financial statements show a true and fair view?

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

2. What is the difference between positive and normative accounting theories?

A) Normative accounting theory specifies the prediction rules for items.
B) Normative accounting theory predicts what is expected to occur rather than explaining what should occur.
C) Positive accounting theory explains what should occur.
D) Normative accounting theory explains what should occur instead of predicting what is expected to occur.

3. Which one of the following would be included in a statement of financial position?

A) proceeds from long term borrowings
B) finance costs
C) retained earnings
D) cost of sales

4. LMN Ltd recently changed the measurement base for their assets. They should I)treat this like a change in an estimate.
II)treat this like a change in the accounting policy.
III)disclose this in the notes to financial statements.

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

5. A decision has been made to change the value of a major non-current asset, upon which depreciation is based, from original cost to a revalued amount. This results in a change in

A) measurement basis and must be disclosed.
B) accounting estimate and must be disclosed.
C) accounting estimate and does not need to be disclosed.
D) measurement basis and does not need to be disclosed.

Solutions: