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

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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following is an advantage of current purchasing power accounting?

A) It enables raw data to be just easily verifiable but not auditable.
B) It provides a stable monetary unit that values profit and capital.
C) It provides a clear use of indices which approximates the measurement of value.
D) It supposes that value of net assets clearly reflects general goods and services are bought once assets were released.

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

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

3. In a strong efficient market, the finance manager will

A) analyse historical data on takeover targets.
B) employ analysts to determine the best time to issue shares.
C) develop strategies to disclose the company's profit or loss.
D) maximise the net present value of the firm's investments.

4. An agent is answerable under the contract to the agent's principal and must account for the resources of the agent's principal and the money the agent has gained working on the principal's behalf. In the context of agency, this definition describes an agent's

A) accountability.
B) contract.
C) relationship.
D) fiduciary duty.

5. An example of voluntary reporting in Australia is a

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

Solutions: