Free Financial-Accounting-and-Reporting Questions for CPA Australia Financial-Accounting-and-Reporting Exam [Mar-2024]
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The CPA Financial Accounting and Reporting (CPA FAR) certification exam is a rigorous test that evaluates the proficiency of individuals in financial accounting and reporting. As the financial industry evolves, it's essential that financial professionals adapt and stay updated with the latest practices and trends. The CPA FAR exam is designed to assess the knowledge and skills necessary to succeed in modern financial accounting and reporting.
NEW QUESTION # 41
In relation to financial statements, the 'true and fair override' indicates that
- A. statements need not always be true and accurate.
- B. accounting standards must be complied with under all circumstances.
- C. the true and fair requirement need not be complied with by certain industries.
- D. departure is allowed from accounting standards under specific instances to show a fair presentation.
Answer: D
NEW QUESTION # 42
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. Respect the rights of shareholders.
- D. Remunerate fairly and responsibly.
Answer: A
NEW QUESTION # 43
Current cost accounting reflects an approach to capital maintenance based on maintaining which one of the following?
- A. operating capability of the business
- B. profitability of the business
- C. financial capability of the business
- D. cost of assets in the business
Answer: A
NEW QUESTION # 44
Which one of the following situations would result in either a new liability being recognised or an existing liability being increased?
- A. A company pays only half of an overdue invoice.
- B. At the end of the reporting period, there are unpaid wages.
- C. A company recognises the depreciation expense for the current period.
- D. A company establishes an asset revaluation reserve.
Answer: B
NEW QUESTION # 45
When business managers seek detailed information about the profitability or efficiency of different parts of their operations, they would find the most useful information in
- A. the annual financial report.
- B. financial statements as specified by IAS 1 Presentation of Financial Statements.
- C. the company's accounting policies.
- D. various management accounting reports.
Answer: D
NEW QUESTION # 46
Which one of the following is not a function of the trustees of the International Financial Reporting Standards Foundation (IFRS Foundation)?
- A. ensuring the financing of the International Accounting Standards Board (IASB)
- B. appointing the members of the International Accounting Standards Board (IASB)
- C. providing suggestions on technical matters relating to accounting standards
- D. promoting the application of International Financial Reporting Standards (IFRSs)
Answer: C
NEW QUESTION # 47
The two fundamental qualitative characteristics of the financial information are
- A. relevance and comparability.
- B. verifiability and relevance.
- C. relevance and faithful representation.
- D. faithful representation and comparability.
Answer: C
NEW QUESTION # 48
Which one of the following statements is correct?
- A. Accounting standards are developed and maintained using a consultative process with the OECD.
- B. Accounting standards prescribe the possible accounting treatments.
- C. Accounting standards provide the basic knowledge upon which the conceptual framework is developed.
- D. Australian accounting standards are based on the US GAAP.
Answer: B
NEW QUESTION # 49
The International Federation of Accountants (IFAC) was established by
- A. the Organization for Economic Co-operation & Development.
- B. various professional accounting bodies.
- C. the International Accounting Standards Board.
- D. the United Nations.
Answer: B
NEW QUESTION # 50
Which one of these is a disadvantage of a conceptual framework?
- A. A single framework is not suitable for all users of financial statements.
- B. It mandates the formats of various financial statements.
- C. It replaces the established principles.
- D. It increases the chances of political interference in the development of accounting standards.
Answer: A
NEW QUESTION # 51
Which one of the following statements regarding the IASB's Conceptual Framework for Financial Reporting is correct?
- A. It overrides any local or international accounting standard.
- B. It specifies the concepts that underlie the preparation and presentation of special purpose financial statements.
- C. It specifies the concepts that underlie the preparation and presentation of general purpose financial statements.
- D. It specifies the concepts that underlie the preparation and presentation of only consolidated financial statements.
Answer: C
NEW QUESTION # 52
An agent is answerable under the contract to the agent's principal and must account for the resources of the agent's principal and the money the agent has gained working on the principal's behalf. In the context of agency, this definition describes an agent's
- A. relationship.
- B. contract.
- C. fiduciary duty.
- D. accountability.
Answer: D
NEW QUESTION # 53
Which of the following statements are correct in the context of accounting concepts and principles?
I)The going concern assumption requires that assets be carried at their cost values.
II)Prudence allows the creation of contingency reserves and more generous provisions.
III)Financial information is considered complete even if it excludes non-material information.
IV)Understandability does not require complex information to be excluded from financial reports.
- A. I and III only
- B. II and IV only
- C. II and III only
- D. III and IV only
Answer: D
NEW QUESTION # 54
According to the IASB Conceptual Framework, income is an increase in economic benefits in the form of I)inflows.
II)decreases of liabilities.
III)enhancements of assets.
IV)contributions from equity holders.
- A. I, II and III only
- B. I, III and IV only
- C. II, III and IV only
- D. I, II and IV only
Answer: A
NEW QUESTION # 55
Which one of the following would be included in a statement of financial position?
- A. finance costs
- B. proceeds from long term borrowings
- C. retained earnings
- D. cost of sales
Answer: C
NEW QUESTION # 56
Which form of capital market efficiency exists when share prices on the stock market reflect all information whether public or not?
- A. semi-strong form efficiency
- B. allocative efficiency
- C. strong form efficiency
- D. information processing efficiency
Answer: C
NEW QUESTION # 57
Which one of the following would be recognised in the statement of profit or loss and other comprehensive income?
- A. retained earnings
- B. employee wages
- C. prepayment of expenses
- D. inventory
Answer: B
NEW QUESTION # 58
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Furthermore, CPA Financial Accounting and Reporting certification is a rigorous examination that tests its candidates on their proficiency in financial management and accounting procedures. Applicants who pass the exam provide proof that they have the skills and knowledge necessary to excel in a range of finance management and accounting roles. Typically, certified accountants are placed in strategic management roles, playing a vital role in developing and implementing business strategies.
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