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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. 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) They are bulky to store compared to computer systems.
D) Productivity in manual systems is lower than computer systems.

2. Which one of the following financial statements helps provide information about factors that might affect an entity's liquidity or solvency?

A) statement of cash flows
B) statement of profit or loss and other comprehensive income
C) statement of changes in equity
D) notes to the financial statements

3. 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) Remunerate fairly and responsibly.
D) Respect the rights of shareholders.

4. 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) current value
B) current purchasing power
C) fair value
D) deprival value

5. Which accounting theory is best described by the statement 'An approach to accounting is one where a theory is thought of as a body of knowledge that explains and attempts to predict actual accounting practice'?

A) historical cost accounting theory
B) general accounting theory
C) positive accounting theory
D) normative accounting theory

Solutions: