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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following is not an advantage of accounting regulation?

A) It provides quality of information in and across financial statements.
B) It instils public confidence in the accounting system employed in commerce and industry.
C) It provides the required accounting information to all necessary shareholders.
D) It provides flexibility in the way accounting information is presented to users.

2. An example of voluntary reporting in Australia is a

A) statement of financial position.
B) sustainability report.
C) statement of comprehensive income.
D) statement of cash flows.

3. Which one of the following best describes the objective of the International Financial Reporting Standards (IFRS) Foundation?

A) to guide investors who compare the financial statements of one entity in one country with those of another entity located elsewhere
B) to develop an International regulatory framework in the national jurisdictions of countries that produce accountants
C) to promote the application, convergence and use of International Financial Reporting Standards (IFRS) as a high quality reporting solution
D) to co-ordinate the accounting profession on a global scale by issuing and establishing international standards

4. According to the Australian Accounting Standards Board, which one of the following is a benefit of adopting International Financial Reporting Standards (IFRSs)?

A) to become a resource for developing nations who can easily adopt IFRSs as a full set of standards
B) to make it easier for tax authorities to calculate taxes on investors' overseas income
C) to enable the national government to control activities of foreign multinationals
D) to increase foreign investors' understanding of local financial reports

5. Which one of the following shows whether the financial statements of a company show a true and fair presentation of the financial performance of the company?

A) Director's Report
B) Auditor's Report
C) Statement of cash flows
D) Corporate Governance Statement

Solutions: