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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. The Framework for the Preparation and Presentation of Financial Statements which assists the development of the International Financial Reporting Standards (IFRS) was originally approved by the

A) IFRS Interpretations Committee (IFRIC).
B) International Accounting Standards Committee (IASC).
C) International Accounting Standards Board (IASB).
D) International Federation of Accountants (IFAC).

2. PLO Advertising Ltd (PLO) buys a new stretch limousine for $40 000. A number of individuals have expressed an interest in buying the limousine from PLO for $60 000. The board members decide that the limousine is worth between $65 000 and $70 000. What is the fair value of the limousine?

A) $65 000
B) $60 000
C) $70 000
D) $40 000

3. Which one of these concepts suggests that stock prices react to new information almost instantly?

A) bargaining power
B) efficient market
C) market power
D) incentive substitution

4. Variations in the regulatory regime over financial reporting in different countries is attributable to a range of differences including

A) company structures, ownership, local culture and the level of development of the country.
B) consumer laws, taxation requirements and the extent to which the country has adopted international financial reporting standards.
C) the extent to which the country has adopted international financial reporting standards and the requirements of local securities exchange.
D) the needs of investors, creditors, employees, lending institutions and taxation authorities.

5. In individual countries, Generally Accepted Accounting Principles (GAAP) is primarily a combination of

A) company law, accounting standards, local stock exchange requirements and international accounting standards.
B) national company law, national accounting standards and local stock exchange requirements.
C) national company law and national accounting standards.
D) national company law and local stock exchange requirements.

Solutions: