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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. 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) III only
B) I and II only
C) I only
D) II and III only

2. Which one of the following reports sets out how directors have run a company and if they implemented proper procedures to deal with matters like accountability, audits, directors' roles and responsibilities, internal controls and relations with shareholders?

A) chairman's statement
B) director's report
C) corporate governance statement
D) corporate social responsibility report

3. The International Federation of Accountants (IFAC) was established by

A) the International Accounting Standards Board.
B) the United Nations.
C) various professional accounting bodies.
D) the Organization for Economic Co-operation & Development.

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

A) finance costs
B) proceeds from long term borrowings
C) cost of sales
D) retained earnings

5. The two fundamental qualitative characteristics of the financial information are

A) faithful representation and comparability.
B) relevance and faithful representation.
C) relevance and comparability.
D) verifiability and relevance.

Solutions: