Best Quality CPA Australia Financial-Accounting-and-Reporting Exam Questions Dumps4PDF Realistic Practice Exams [2021]
Critical Information To CPA Financial Accounting and Reporting Exam Pass the First Time
NEW QUESTION 16
Which one of the following best describes the objective of the International Financial Reporting Standards (IFRS) Foundation?
- A. to co-ordinate the accounting profession on a global scale by issuing and establishing international standards
- B. to guide investors who compare the financial statements of one entity in one country with those of another entity located elsewhere
- C. to promote the application, convergence and use of International Financial Reporting Standards (IFRS) as a high quality reporting solution
- D. to develop an International regulatory framework in the national jurisdictions of countries that produce accountants
Answer: C
NEW QUESTION 17
Which one of the following statements is correct?
- A. Accounting standards are developed and maintained using a consultative process with the OECD.
- B. Australian accounting standards are based on the US GAAP.
- C. Accounting standards provide the basic knowledge upon which the conceptual framework is developed.
- D. Accounting standards prescribe the possible accounting treatments.
Answer: D
NEW QUESTION 18
XYZ Ltd is listed on the Australian Securities Exchange (ASX). Which one of the following reports is the company required to prepare as a part of its annual financial report?
- A. chairman's statement
- B. sustainability report
- C. management commentary
- D. corporate governance statement
Answer: D
NEW QUESTION 19
A company purchased a machine 10 years ago for $143 890. It is expected that the machine will generate future revenues of $108 495. The machine could be scrapped for $81 232. An equivalent machine in the same condition would cost $94 950 to buy now. What is the deprival value of the asset?
- A. $81 232
- B. $94 950
- C. $35 395
- D. $108 495
Answer: B
NEW QUESTION 20
The concept of transparency in corporate governance means that listed companies should disclose
- A. their future strategy.
- B. confidential issues relating to competitors.
- C. material information that affects decisions.
- D. only mandatory information by management.
Answer: C
NEW QUESTION 21
Which one of the following statements is not correct in respect of manual accounting systems?
- A. Risk of error is greater and the quality of outputs is inferior.
- B. It is easy to make corrections.
- C. Productivity in manual systems is lower than computer systems.
- D. They are bulky to store compared to computer systems.
Answer: B
NEW QUESTION 22
X was influenced by G Co's audit report and dividend declaration, and decided to invest in the securities of the company. What should X be cautious about before investing in the shares of the company?
X should be aware that
- A. the auditor's report is influenced by the directors.
- B. the declaration of dividends assures high earnings per share.
- C. the auditor's report refers to the company's prior year financials.
- D. a declaration of dividend is the ultimate measure of a company's profitability.
Answer: C
NEW QUESTION 23
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. Liabilities are future obligations that will cause outflow of resources embodying economic benefits.
- C. A statement of financial position explains the reasons for movement of assets and liabilities through the accounting period.
- D. Assets used for long-term operations are shown under working capital in the statement of financial position.
Answer: A
NEW QUESTION 24
Financial markets have achieved operational efficiency when
- A. past records are used to predict the future prices of goods.
- B. the costs of financial transactions are kept as low as possible.
- C. the price of stocks and shares are available accurately and quickly.
- D. the cost of transactions is a reflection of the actual cost incurred.
Answer: B
NEW QUESTION 25
Restrictions on the scope of a specific accounting standard are stated in
- A. various Statements of Accounting Concepts (SACs) issued by the AASB.
- B. the explanatory materials provided by the AASB.
- C. the IASB's Conceptual Framework.
- D. that specific standard.
Answer: D
NEW QUESTION 26
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.
Answer: D
NEW QUESTION 27
Which one of the following is not an Australian Securities Exchange (ASX) principle of good corporate governance?
- A. Respect the rights of shareholders.
- B. Remunerate fairly and responsibly.
- C. Promote ethical and responsible decision-making.
- D. Safeguard the environment.
Answer: D
NEW QUESTION 28
A decision has been made to change the value of a major non-current asset, upon which depreciation is based, from original cost to a revalued amount. This results in a change in
- A. measurement basis and must be disclosed.
- B. accounting estimate and must be disclosed.
- C. measurement basis and does not need to be disclosed.
- D. accounting estimate and does not need to be disclosed.
Answer: A
NEW QUESTION 29
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. II, III and IV only
- B. I, II and III only
- C. I, III and IV only
- D. I, II and IV only
Answer: B
NEW QUESTION 30
Which one of the following is an objective of the International Federation of Accountants (IFAC)?
- A. to provide advice on accounting standards to the OECD
- B. to establish high quality professional standards in accountancy
- C. to provide direction to the Financial Accounting Standards Board (FASB)
- D. to issue new international financial reporting standards (IFRS)
Answer: B
NEW QUESTION 31
A company's financial report is compliant with International Financial Reporting Standards. Where in the report would an investor find the amount of money received by the company for investment activities?
- A. statement of financial position
- B. statement of comprehensive income
- C. statement of changes in equity
- D. statement of cash flows
Answer: D
NEW QUESTION 32
Which one of the following bases of measurement is used to implement an approach to capital maintenance based on maintaining the operating capability of a business?
- A. deprival value
- B. current purchasing power
- C. fair value
- D. current value
Answer: A
NEW QUESTION 33
In individual countries, Generally Accepted Accounting Principles (GAAP) is primarily a combination of
- A. national company law, national accounting standards and local stock exchange requirements.
- B. national company law and local stock exchange requirements.
- C. national company law and national accounting standards.
- D. company law, accounting standards, local stock exchange requirements and international accounting standards.
Answer: A
NEW QUESTION 34
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