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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. The two fundamental qualitative characteristics of the financial information are

A) verifiability and relevance.
B) faithful representation and comparability.
C) relevance and comparability.
D) relevance and faithful representation.

2. In the context of a regulatory framework, a principles-based system

A) is a rule-driven approach.
B) provides a theoretical basis with broad terms of reference.
C) removes any element of judgement by providing clear requirements.
D) attempts to cover specific eventualities.

3. According to the IASB's Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of

A) management.
B) employees.
C) capital providers.
D) internal users.

4. As per the International Accounting Standards Board conceptual framework, which of the following holds the primary responsibility for preparing and presenting financial statements?
I)owners
II)auditors
III)directors

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

5. 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 changes in equity
C) statement of comprehensive income
D) statement of cash flows

Solutions: