CPA Australia : Financial-Accounting-and-Reporting Questions & Answers

Last Updated: Sep 07, 2026

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

SectionObjectives
Topic 1: Financial Statement Analysis and Interpretation- Analysis techniques
  • 1. Ratio analysis
    • 2. Trend and comparative analysis
      Topic 2: Financial Statements- Preparation and presentation
      • 1. Statement of profit or loss and other comprehensive income
        • 2. Statement of financial position
          • 3. Statement of cash flows
            Topic 3: Revenue Recognition- Revenue from contracts with customers
            • 1. Timing of revenue recognition
              • 2. Identification of performance obligations
                Topic 4: Assets- Asset recognition and measurement
                • 1. Impairment of assets
                  • 2. Intangible assets
                    • 3. Inventories
                      • 4. Property, plant and equipment
                        Topic 5: Financial Reporting Framework- Conceptual framework for financial reporting
                        • 1. Qualitative characteristics of financial information
                          • 2. Recognition and measurement principles
                            Topic 6: Liabilities and Equity- Financial instruments and obligations
                            • 1. Provisions and contingencies
                              • 2. Equity instruments
                                • 3. Borrowing costs
                                  Topic 7: Consolidated Financial Statements- Group accounting
                                  • 1. Goodwill recognition and impairment
                                    • 2. Business combinations
                                      • 3. Non-controlling interests

                                        CPA Australia CPA Financial Accounting and Reporting Sample Questions:

                                        Question #1

                                        Which one of the following bodies makes accounting standards in Australia?

                                        • A. FRC
                                        • B. IASB
                                        • C. AASB
                                        • D. ASIC
                                        Answer: C
                                        Question #2

                                        As per the International Accounting Standards Board conceptual framework, which of the following holds the primary responsibility for preparing and presenting financial statements?
                                        I)owners
                                        II)auditors
                                        III)directors

                                        • A. I and II only
                                        • B. I only
                                        • C. II and III only
                                        • D. III only
                                        Answer: D
                                        Question #3

                                        Which one of the following reports sets out how directors have run a company and if they implemented proper procedures to deal with matters like accountability, audits, directors' roles and responsibilities, internal controls and relations with shareholders?

                                        • A. corporate governance statement
                                        • B. director's report
                                        • C. chairman's statement
                                        • D. corporate social responsibility report
                                        Answer: A
                                        Question #4

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

                                        • A. profit smoothing
                                        • B. window dressing
                                        • C. trading in derivatives
                                        • D. aggressive earnings management
                                        Answer: C
                                        Question #5

                                        Which one of the following bases of measurement is used to implement an approach to capital maintenance based on maintaining the operating capability of a business?

                                        • A. current value
                                        • B. current purchasing power
                                        • C. fair value
                                        • D. deprival value
                                        Answer: D

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