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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following would be included in the statement of financial position?

A) deferred tax
B) depreciation
C) gains on property valuations
D) distribution costs

2. In the context of a regulatory framework, a principles-based system

A) is a rule-driven approach.
B) removes any element of judgement by providing clear requirements.
C) attempts to cover specific eventualities.
D) provides a theoretical basis with broad terms of reference.

3. The body that is part of the international standard-setting framework reporting to the International Financial Reporting Standards Foundation (IFRS Foundation) is the

A) International Accounting Standards Board.
B) International Accounting Standards Committee.
C) Centre on Transnational Corporations.
D) International Accounting Board.

4. The concept of transparency in corporate governance means that listed companies should disclose

A) their future strategy.
B) only mandatory information by management.
C) confidential issues relating to competitors.
D) material information that affects decisions.

5. The IASB evaluates the merits of adding a potential item to its agenda mainly by reference to the needs of

A) regulatory authorities.
B) suppliers.
C) investors.
D) tax agencies.

Solutions: