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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which form of capital market efficiency exists when share prices on the stock market reflect all information whether public or not?

A) information processing efficiency
B) strong form efficiency
C) allocative efficiency
D) semi-strong form efficiency

2. A rules-based approach to standard setting

A) ensures there are no conflicts within accounting standards as each issue is handled just once.
B) prescribes standards that attempt to cover all eventualities a business may face.
C) helps a standard-setting body to prioritise matters.
D) provides a broad framework for standard setting.

3. Historical cost accounting provides financial information that is

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

4. 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 purchasing power
B) fair value
C) current value
D) deprival value

5. The International Accounting Standards Board's Conceptual Framework for Financial Reporting for the preparation and presentation of financial statements is concerned with the information needs of most users, but not for each possible user.
Which one of the following stakeholders would not be one of the users that the Conceptual Framework is concerned about?

A) a company's executive management
B) potential investors in the company
C) governments and regulatory bodies
D) members of the public who have small investment holdings in the company

Solutions: