CPA Australia CPA Foundation Program Financial-Accounting-and-Reporting

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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

Question #1

Which one of the following is not a function of the trustees of the International Financial Reporting Standards Foundation (IFRS Foundation)?

A. ensuring the financing of the International Accounting Standards Board (IASB)
B. appointing the members of the International Accounting Standards Board (IASB)
C. promoting the application of International Financial Reporting Standards (IFRSs)
D. providing suggestions on technical matters relating to accounting standards

Question #2

A rules-based approach to standard setting

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

Question #3

Which one of the following situations would result in either a new liability being recognised or an existing liability being increased?

A. A company pays only half of an overdue invoice.
B. A company recognises the depreciation expense for the current period.
C. At the end of the reporting period, there are unpaid wages.
D. A company establishes an asset revaluation reserve.

Question #4

Which one of the following would be recognised in the statement of profit or loss and other comprehensive income?

A. prepayment of expenses
B. inventory
C. employee wages
D. retained earnings

Question #5

You assumed the role as the Chairperson of the Board of Directors of Daylight Ltd. As you start to write your first directors' report, which one of the following areas are you not required to include in your report?

A. Details regarding any significant changes to Daylight's state of affairs for the year that just ended.
B. Details of any dividends paid or proposed.
C. Review of operations of Daylight during the year just ended and any likely developments in the future that may impact Daylight.
D. Details regarding accounting policies pursued by Daylight in preparation of its financial statements.

Solutions: