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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) statement of financial position.
C) statement of cash flows.
D) sustainability report.

2. A rules-based approach to standard setting

A) ensures there are no conflicts within accounting standards as each issue is handled just once.
B) prescribes standards that attempt to cover all eventualities a business may face.
C) helps a standard-setting body to prioritise matters.
D) provides a broad framework for standard setting.

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

A) public good
B) personal incentives
C) benefits from shares and share options
D) bonus-related pay

4. Which one of the following statements is correct?

A) Current and non-current assets are shown as separate classifications in the statement of financial position.
B) Assets used for long-term operations are shown under working capital in the statement of financial position.
C) Liabilities are future obligations that will cause outflow of resources embodying economic benefits.
D) A statement of financial position explains the reasons for movement of assets and liabilities through the accounting period.

5. According to the IASB's Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of

A) capital providers.
B) internal users.
C) management.
D) employees.

Solutions: