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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

Question 1

Which one of these is a key principle of good corporate governance?

A. effective communication with shareholders
B. restriction of shareholders' rights in decision-making
C. effective management of the employees of the company
D. non-disclosure of directors' agency relationship with the company

Question 2

Which one of the following statements is not correct in respect of manual accounting systems?

A. Productivity in manual systems is lower than computer systems.
B. They are bulky to store compared to computer systems.
C. It is easy to make corrections.
D. Risk of error is greater and the quality of outputs is inferior.

Question 3

A statement of comprehensive income reports on

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

Question 4

In applying accounting standards, an entity develops accounting policies that ensure that the financial statements present

A. relevant and reliable financial information.
B. relevant and correct financial information to all interested shareholders.
C. understandable and clear financial information to all interested shareholders.
D. comparable and accurate financial information to all shareholders.

Question 5

What is the difference between positive and normative accounting theories?

A. Normative accounting theory specifies the prediction rules for items.
B. Normative accounting theory predicts what is expected to occur rather than explaining what should occur.
C. Normative accounting theory explains what should occur instead of predicting what is expected to occur.
D. Positive accounting theory explains what should occur.

Solutions: