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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. A company sold some old operating equipment from its factory. After depreciation was accounted for, a small gain on sale was recorded. According to the revised IAS 1 Presentation of Financial Statements, this transaction will be shown as a separate item 'gain on sale of equipment'. This item will be shown in the statement of

A) comprehensive income.
B) cash flow.
C) changes in equity.
D) financial position.

2. Restrictions on the scope of a specific accounting standard are stated in

A) the explanatory materials provided by the AASB.
B) various Statements of Accounting Concepts (SACs) issued by the AASB.
C) the IASB's Conceptual Framework.
D) that specific standard.

3. A decision has been made to change the value of a major non-current asset, upon which depreciation is based, from original cost to a revalued amount. This results in a change in

A) accounting estimate and does not need to be disclosed.
B) accounting estimate and must be disclosed.
C) measurement basis and does not need to be disclosed.
D) measurement basis and must be disclosed.

4. JK Ltd intentionally over-valued its closing inventories to increase profitability for the year 20X8. This would help them to better price a planned share issue in 20X9. By doing this they have breached the concept of

A) completeness.
B) neutrality.
C) understandability.
D) substance over form.

5. In a stock market that displays strong efficiency, share prices reflect all available

A) information about past changes in share prices.
B) public information.
C) public and inside information.
D) information about future expansion plans.

Solutions: