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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Financial Statements | - Preparation and presentation
|
| Revenue Recognition | - Revenue from contracts with customers
|
| Assets | - Asset recognition and measurement
|
| Financial Reporting Framework | - Conceptual framework for financial reporting
|
| Liabilities and Equity | - Financial instruments and obligations
|
| Financial Statement Analysis and Interpretation | - Analysis techniques
|
| Consolidated Financial Statements | - Group accounting
|
CPA Australia CPA Financial Accounting and Reporting Sample Questions:
An example of voluntary reporting in Australia is a
- A. statement of comprehensive income.
- B. statement of financial position.
- C. statement of cash flows.
- D. sustainability report.
Correct Answer: D 🗳️
Which one of the following is an accurate definition of fair value of an asset?
- A. The amount yet to be written off over the remainder of the asset's useful life.
- B. The cost of replacing an asset with an identical item.
- C. The price for which an asset could be sold in an orderly transaction between market participants at the measurement date.
- D. The price for which an asset could be sold net of disposal costs.
Correct Answer: C 🗳️
Which of the following statements are correct in the context of accounting concepts and principles?
I)The going concern assumption requires that assets be carried at their cost values.
II)Prudence allows the creation of contingency reserves and more generous provisions.
III)Financial information is considered complete even if it excludes non-material information.
IV)Understandability does not require complex information to be excluded from financial reports.
- A. II and III only
- B. III and IV only
- C. I and III only
- D. II and IV only
Correct Answer: B 🗳️
What is the difference between positive and normative accounting theories?
- A. Positive accounting theory explains what should occur.
- B. Normative accounting theory predicts what is expected to occur rather than explaining what should occur.
- C. Normative accounting theory explains what should occur instead of predicting what is expected to occur.
- D. Normative accounting theory specifies the prediction rules for items.
Correct Answer: C 🗳️
According to IASB's Conceptual Framework, an expense is a decrease in economic benefits in the form of
I.
outflows.
II.
decreases of assets.
III.
incurrences of liabilities.
IV.
contributions to equity holders.
- A. I, III and IV only
- B. I, II and III only
- C. I, II and IV only
- D. II, III and IV only
Correct Answer: B 🗳️
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