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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. An example of voluntary reporting in Australia is a

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

2. Which one of the following practices is not considered creative accounting?

A) window dressing
B) profit smoothing
C) trading in derivatives
D) aggressive earnings management

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

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

4. Which one of the following is an accurate definition of fair value of an asset?

A) The price for which an asset could be sold net of disposal costs.
B) The amount yet to be written off over the remainder of the asset's useful life.
C) The price for which an asset could be sold in an orderly transaction between market participants at the measurement date.
D) The cost of replacing an asset with an identical item.

5. Which one of the following is not an Australian Securities Exchange (ASX) principle of good corporate governance?

A) Promote ethical and responsible decision-making.
B) Safeguard the environment.
C) Remunerate fairly and responsibly.
D) Respect the rights of shareholders.

Solutions: