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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 Federation of Accountants (IFAC).
C) International Accounting Standards Board (IASB).
D) International Accounting Standards Committee (IASC).

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

A) the needs of investors, creditors, employees, lending institutions and taxation authorities.
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) company structures, ownership, local culture and the level of development of the country.

3. The two fundamental qualitative characteristics of the financial information are

A) faithful representation and comparability.
B) relevance and comparability.
C) relevance and faithful representation.
D) verifiability and relevance.

4. Which one of the following includes social reporting guidelines?

A) International Accounting Standards (IAS)
B) Generally Accepted Accounting Principles (GAAP)
C) International Financial Reporting Standards (IFRS)
D) Global Reporting Initiative (GRI)

5. In an efficient market, normally if interest rates rise, share prices will

A) rise due to the overall positive sentiment.
B) fall since investors expect a higher return.
C) fall in anticipation of a reversal in the interest rate cycle.
D) rise since banks invest their increased profits.

Solutions: