CPA Australia Financial-Accounting-and-Reporting Q&A - in .pdf

  • Financial-Accounting-and-Reporting pdf
  • Exam Code: Financial-Accounting-and-Reporting
  • Exam Name: CPA Financial Accounting and Reporting Exam
  • Updated: Sep 11, 2026
  • Q & A: 100 Questions and Answers
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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:

SectionObjectives
Topic 1: Revenue Recognition- Revenue from contracts with customers
  • 1. Identification of performance obligations
    • 2. Timing of revenue recognition
      Topic 2: Financial Statements- Preparation and presentation
      • 1. Statement of financial position
        • 2. Statement of profit or loss and other comprehensive income
          • 3. Statement of cash flows
            Topic 3: Financial Reporting Framework- Conceptual framework for financial reporting
            • 1. Qualitative characteristics of financial information
              • 2. Recognition and measurement principles
                Topic 4: Liabilities and Equity- Financial instruments and obligations
                • 1. Equity instruments
                  • 2. Provisions and contingencies
                    • 3. Borrowing costs
                      Topic 5: Assets- Asset recognition and measurement
                      • 1. Property, plant and equipment
                        • 2. Intangible assets
                          • 3. Impairment of assets
                            • 4. Inventories
                              Topic 6: Consolidated Financial Statements- Group accounting
                              • 1. Business combinations
                                • 2. Non-controlling interests
                                  • 3. Goodwill recognition and impairment
                                    Topic 7: Financial Statement Analysis and Interpretation- Analysis techniques
                                    • 1. Ratio analysis
                                      • 2. Trend and comparative analysis

                                        CPA Australia CPA Financial Accounting and Reporting Sample Questions:

                                        Question #1

                                        In a strong efficient market, the finance manager will

                                        • A. analyse historical data on takeover targets.
                                        • B. maximise the net present value of the firm's investments.
                                        • C. develop strategies to disclose the company's profit or loss.
                                        • D. employ analysts to determine the best time to issue shares.
                                        Answer: B
                                        Question #2

                                        Which one of the following is not a principal motivation for creative accounting?

                                        • A. public good
                                        • B. bonus-related pay
                                        • C. personal incentives
                                        • D. benefits from shares and share options
                                        Answer: A
                                        Question #3

                                        As per the International Accounting Standards Board conceptual framework, which of the following holds the primary responsibility for preparing and presenting financial statements?
                                        I)owners
                                        II)auditors
                                        III)directors

                                        • A. I and II only
                                        • B. I only
                                        • C. II and III only
                                        • D. III only
                                        Answer: D
                                        Question #4

                                        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
                                        Answer: C
                                        Question #5

                                        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. sustainability report
                                        • B. corporate governance statement
                                        • C. management commentary
                                        • D. chairman's statement
                                        Answer: B
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