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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following is an objective of the International Federation of Accountants (IFAC)?

A) to provide advice on accounting standards to the OECD
B) to issue new international financial reporting standards (IFRS)
C) to provide direction to the Financial Accounting Standards Board (FASB)
D) to establish high quality professional standards in accountancy

2. A statement of generally accepted theoretical principles which form the frame of reference for financial reporting refers to the

A) Conceptual Framework.
B) International Financial Reporting Standards.
C) Regulatory Framework.
D) Generally Accepted Accounting Principles.

3. XYZ Ltd is listed on the Australian Securities Exchange (ASX). Which one of the following reports is the company required to prepare as a part of its annual financial report?

A) corporate governance statement
B) management commentary
C) sustainability report
D) chairman's statement

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

5. A statement of comprehensive income reports on

A) financial position.
B) financial performance.
C) solvency.
D) changes in financial position.

Solutions: