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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. 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

2. Generally accepted accounting practice recognises revenue when

A) goods are produced.
B) cash is received for the goods.
C) goods are dispatched to the customer.
D) customers order goods.

3. To be relevant, financial information has to
I)be provided in a timely manner.
II)comply with the going concern assumption.
III)have predictive and/or confirmatory value.
IV)exclude computations that are difficult to understand.

A) I and III only
B) III and IV only
C) II and III only
D) I and II only

4. In the context of a regulatory framework, a principles-based system

A) is a rule-driven approach.
B) provides a theoretical basis with broad terms of reference.
C) removes any element of judgement by providing clear requirements.
D) attempts to cover specific eventualities.

5. Which one of the following statements is not correct in respect of manual accounting systems?

A) They are bulky to store compared to computer systems.
B) Risk of error is greater and the quality of outputs is inferior.
C) It is easy to make corrections.
D) Productivity in manual systems is lower than computer systems.

Solutions: