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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. The use of the principle of substance over form is found in which one of the following accounting treatments?

A) accounting for non-current assets
B) accounting for finance leases
C) accounting for inventories
D) accounting for property, plant and equipment

2. Which one of the following statements is correct?

A) A statement of financial position explains the reasons for movement of assets and liabilities through the accounting period.
B) Current and non-current assets are shown as separate classifications in the statement of financial position.
C) Assets used for long-term operations are shown under working capital in the statement of financial position.
D) Liabilities are future obligations that will cause outflow of resources embodying economic benefits.

3. A company's financial report is compliant with International Financial Reporting Standards. Where in the report would an investor find the amount of money received by the company for investment activities?

A) statement of changes in equity
B) statement of financial position
C) statement of cash flows
D) statement of comprehensive income

4. 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) II, III and IV only
B) I, III and IV only
C) I, II and III only
D) I, II and IV only

5. Generally accepted accounting practice recognises revenue when

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

Solutions: