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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following statements is correct?

A) Accounting standards provide the basic knowledge upon which the conceptual framework is developed.
B) Accounting standards prescribe the possible accounting treatments.
C) Australian accounting standards are based on the US GAAP.
D) Accounting standards are developed and maintained using a consultative process with the OECD.

2. The accounting policies used by companies must result in financial reports that are

A) independently audited.
B) signed by the CEO or equivalent.
C) comparable with previous years' reports.
D) easy to read.

3. The ability of a company to pay its bills when and as they fall due is a measure of

A) economic value.
B) compliance with the conceptual framework.
C) the true and fair view of the financial report.
D) solvency.

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

A) operating capability of the business
B) profitability of the business
C) financial capability of the business
D) cost of assets in the business

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

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

Solutions: