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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. 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.

2. Which one of the following is not a principal motivation for creative accounting?

A) personal incentives
B) benefits from shares and share options
C) bonus-related pay
D) public good

3. Which one of the following best describes the objective of the International Financial Reporting Standards (IFRS) Foundation?

A) to promote the application, convergence and use of International Financial Reporting Standards (IFRS) as a high quality reporting solution
B) to co-ordinate the accounting profession on a global scale by issuing and establishing international standards
C) to develop an International regulatory framework in the national jurisdictions of countries that produce accountants
D) to guide investors who compare the financial statements of one entity in one country with those of another entity located elsewhere

4. Which one of the following is an objective of the International Federation of Accountants (IFAC)?

A) to provide direction to the Financial Accounting Standards Board (FASB)
B) to provide advice on accounting standards to the OECD
C) to establish high quality professional standards in accountancy
D) to issue new international financial reporting standards (IFRS)

5. Which one of the following statements is correct?

A) Current and non-current assets are shown as separate classifications in the statement of financial position.
B) Assets used for long-term operations are shown under working capital in the statement of financial position.
C) A statement of financial position explains the reasons for movement of assets and liabilities through the accounting period.
D) Liabilities are future obligations that will cause outflow of resources embodying economic benefits.

Solutions: