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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following is the correct treatment of sales?

A) Cash and credit sales are recorded in the receivables ledger prior to posting to the general ledger.
B) Cash sales are recorded in the receivables ledger prior to posting to the general ledger.
C) Credit sales are recorded in the receivables ledger prior to posting to the general ledger.
D) Credit sales are not recorded in the receivables ledger prior to posting to the general ledger.

2. The chairperson of XYZ Company is concerned about the readability of the annual financial report that is about to be published on its website. XYZ Company is obliged to comply with International Financial Reporting Standards, and the report contains all of the required financial statements, the auditor's report, corporate governance statements, declarations of accounting policy, explanatory notes and a section that addresses the company's corporate social responsibility program.
The chairperson is wondering whether the report can be condensed. The issue that is concerning the chairperson is known as

A) the cost of compliance.
B) information overload.
C) the agency costs of monitoring.
D) the costs of social responsibility reporting.

3. A statement of comprehensive income reports on

A) financial position.
B) financial performance.
C) changes in financial position.
D) solvency.

4. 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) semi-strong form efficiency
C) allocative efficiency
D) strong form efficiency

5. Restrictions on the scope of a specific accounting standard are stated in

A) various Statements of Accounting Concepts (SACs) issued by the AASB.
B) that specific standard.
C) the IASB's Conceptual Framework.
D) the explanatory materials provided by the AASB.

Solutions: