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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which of the following are the stated objectives of the International Accounting Standards Board (IASB)?
I)Enforce accounting standards.
II)Develop accounting standards.
III)Work for convergence of accounting standards.

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

2. Generally accepted accounting practice recognises revenue when

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

3. Which of the following represents a principal-agent relationship?
I.
shareholders-auditors
II.
shareholders-management
III.
security exchange-company
IV.
board of directors-employees

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

4. Financial managers will benefit in a strongly efficient market by

A) being able to decide what information needs to be made available to shareholders.
B) being able to take more risks without shareholders' consent.
C) having their shareholders be tolerant of low profits if higher profits are expected in the future.
D) having their shareholders invest more money into expanding the company's operations.

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

A) deferred tax
B) depreciation
C) gains on property valuations
D) distribution costs

Solutions: