CPA Australia CPA Foundation Program Financial-Accounting-and-Reporting

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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following countries has the view that Generally Accepted Accounting Principles (GAAP) refers to accounting practices which are regarded as permissible by the accounting profession?

A) Australia
B) Canada
C) United Kingdom
D) United States of America

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

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

3. In applying accounting standards, an entity develops accounting policies that ensure that the financial statements present

A) relevant and correct financial information to all interested shareholders.
B) comparable and accurate financial information to all shareholders.
C) understandable and clear financial information to all interested shareholders.
D) relevant and reliable financial information.

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

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

5. An example of voluntary reporting in Australia is a

A) statement of financial position.
B) statement of comprehensive income.
C) sustainability report.
D) statement of cash flows.

Solutions: