CPA Australia CPA Financial Accounting and Reporting : Financial-Accounting-and-Reporting

Financial-Accounting-and-Reporting real exams

Exam Code: Financial-Accounting-and-Reporting

Exam Name: CPA Financial Accounting and Reporting Exam

Updated: Sep 11, 2026

Q & A: 100 Questions and Answers

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

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

                                        CPA Australia CPA Financial Accounting and Reporting Sample Questions:

                                        Question #1

                                        The objective of the International Accounting Standards Board (IASB) is to

                                        • A. oversee the standard setting process and International Financial Reporting Standards Advisory Council.
                                        • B. provide strategic advice to the International Financial Reporting Standards Advisory Council.
                                        • C. enforce International Financial Reporting Standards.
                                        • D. set International Financial Reporting Standards.
                                        Answer: D
                                        Question #2

                                        Which one of the following examples would not represent an agency cost?

                                        • A. the cost of preparing a financial report for shareholders
                                        • B. the cost of engaging an external auditor
                                        • C. the cost of preparing a cost-benefit report for a new project
                                        • D. the cost of employing an internal auditor
                                        Answer: C
                                        Question #3

                                        Financial markets have achieved operational efficiency when

                                        • A. the costs of financial transactions are kept as low as possible.
                                        • B. past records are used to predict the future prices of goods.
                                        • C. the price of stocks and shares are available accurately and quickly.
                                        • D. the cost of transactions is a reflection of the actual cost incurred.
                                        Answer: A
                                        Question #4

                                        Current cost accounting reflects an approach to capital maintenance based on maintaining which one of the following?

                                        • A. cost of assets in the business
                                        • B. financial capability of the business
                                        • C. operating capability of the business
                                        • D. profitability of the business
                                        Answer: C
                                        Question #5

                                        Which one of the following countries has the view that Generally Accepted Accounting Principles (GAAP) refers to accounting practices which are regarded as permissible by the accounting profession?

                                        • A. United Kingdom
                                        • B. United States of America
                                        • C. Canada
                                        • D. Australia
                                        Answer: A

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