CPA Australia Financial-Accounting-and-Reporting Q&A - in .pdf

  • Financial-Accounting-and-Reporting pdf
  • Exam Code: Financial-Accounting-and-Reporting
  • Exam Name: CPA Financial Accounting and Reporting Exam
  • Updated: Aug 06, 2026
  • Q & A: 100 Questions and Answers
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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Financial Instruments12%- Classification and measurement
- Recognition, derecognition and disclosure
Topic 2: Business Combinations and Group Accounting20%- Business combinations and goodwill
- Consolidation principles and procedures
- Non-controlling interests
Topic 3: Presentation of Financial Statements15%- Statement of financial position
- Statement of profit or loss and OCI
- Statement of cash flows and notes
Topic 4: Role and Regulatory Framework of Financial Reporting15%- Regulatory environment and standards setting
- Business entities and reporting obligations
- Conceptual framework and qualitative characteristics
Topic 5: Impairment of Assets6%- Impairment indicators and recoverable amount
- Impairment testing and recognition
Topic 6: Income Taxes18%- Tax effects in financial statements
- Current and deferred tax calculation
Topic 7: Revenue, Provisions and Liabilities14%- Provisions, contingent liabilities and assets
- Revenue from contracts with customers

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Historical cost accounting provides financial information that is

A) relevant but may not be reliable for decision making.
B) relevant for decision making.
C) relevant and reliable for decision making.
D) reliable but may not be relevant for decision making.


2. Which one of the following practices is not considered creative accounting?

A) trading in derivatives
B) window dressing
C) profit smoothing
D) aggressive earnings management


3. Which one of the following bases of measurement is used to implement an approach to capital maintenance based on maintaining the operating capability of a business?

A) current value
B) fair value
C) deprival value
D) current purchasing power


4. Which one of the following parties provides information to ensure that the financial statements show a true and fair view?

A) shareholders
B) financial Institutions
C) directors of the company
D) tax consultants


5. In relation to financial statements, the 'true and fair override' indicates that

A) accounting standards must be complied with under all circumstances.
B) the true and fair requirement need not be complied with by certain industries.
C) departure is allowed from accounting standards under specific instances to show a fair presentation.
D) statements need not always be true and accurate.


Solutions:

Question # 1
Answer: D
Question # 2
Answer: A
Question # 3
Answer: C
Question # 4
Answer: C
Question # 5
Answer: C

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