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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. The IASB evaluates the merits of adding a potential item to its agenda mainly by reference to the needs of

A) investors.
B) suppliers.
C) tax agencies.
D) regulatory authorities.

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. PLO Advertising Ltd (PLO) buys a new stretch limousine for $40 000. A number of individuals have expressed an interest in buying the limousine from PLO for $60 000. The board members decide that the limousine is worth between $65 000 and $70 000. What is the fair value of the limousine?

A) $40 000
B) $60 000
C) $65 000
D) $70 000

4. Which one of the following is not an Australian Securities Exchange (ASX) principle of good corporate governance?

A) Safeguard the environment.
B) Remunerate fairly and responsibly.
C) Respect the rights of shareholders.
D) Promote ethical and responsible decision-making.

5. Which one of the following includes social reporting guidelines?

A) Global Reporting Initiative (GRI)
B) International Accounting Standards (IAS)
C) Generally Accepted Accounting Principles (GAAP)
D) International Financial Reporting Standards (IFRS)

Solutions: