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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following statements regarding the IASB's Conceptual Framework for Financial Reporting is correct?

A) It specifies the concepts that underlie the preparation and presentation of general purpose financial statements.
B) It specifies the concepts that underlie the preparation and presentation of special purpose financial statements.
C) It overrides any local or international accounting standard.
D) It specifies the concepts that underlie the preparation and presentation of only consolidated financial statements.

2. Which one of the following is a benefit of developing financial reporting standards using a conceptual framework?

A) The financial statements based on these standards would be error-free.
B) The interpretation of non-financial information is made easier.
C) The interpretation of financial reporting standards by anybody would be easy.
D) A financial reporting environment based on standardised principles would be created.

3. 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

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

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

5. XYZ Ltd is listed on the Australian Securities Exchange (ASX). Which one of the following reports is the company required to prepare as a part of its annual financial report?

A) management commentary
B) sustainability report
C) corporate governance statement
D) chairman's statement

Solutions: