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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

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

A) Credit sales are recorded in the receivables ledger prior to posting to the general ledger.
B) Cash and credit sales are recorded in the receivables ledger prior to posting to the general ledger.
C) Cash 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. Which of the following represents a principal-agent relationship?
I.
shareholders-auditors
II.
shareholders-management
III.
security exchange-company
IV.
board of directors-employees

A) I, II, III and IV
B) I, II and III only
C) I, II and IV only
D) II, III and IV only

3. The concept of transparency in corporate governance means that listed companies should disclose

A) confidential issues relating to competitors.
B) material information that affects decisions.
C) their future strategy.
D) only mandatory information by management.

4. 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) Canada
B) United States of America
C) Australia
D) United Kingdom

5. Which one of the following parties provides information to ensure that the financial statements show a true and fair view?

A) shareholders
B) tax consultants
C) directors of the company
D) financial Institutions

Solutions: