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CPA Australia CPA Financial Accounting and Reporting Sample Questions:
1. Historical cost accounting provides financial information that is
A) reliable but may not be relevant for decision making.
B) relevant and reliable for decision making.
C) relevant for decision making.
D) relevant but may not be reliable for decision making.
2. Which one of the following is not an Australian Securities Exchange (ASX) principle of good corporate governance?
A) Safeguard the environment.
B) Remunerate fairly and responsibly.
C) Respect the rights of shareholders.
D) Promote ethical and responsible decision-making.
3. In a stock market that displays strong efficiency, share prices reflect all available
A) information about past changes in share prices.
B) public information.
C) information about future expansion plans.
D) public and inside information.
4. Investors use the audited financial statements of a company to
I)evaluate the company's current return on assets
II)predict the company's market conditions for future years.
III)predict the company's market conditions for future years.
IV)make a judgement on the liquidity and solvency of the company.
A) I and IV only
B) II and III only
C) I and III only
D) III and IV only
5. The International Accounting Standards Board's Conceptual Framework for Financial Reporting for the preparation and presentation of financial statements is concerned with the information needs of most users, but not for each possible user.
Which one of the following stakeholders would not be one of the users that the Conceptual Framework is concerned about?
A) members of the public who have small investment holdings in the company
B) governments and regulatory bodies
C) potential investors in the company
D) a company's executive management
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: D |


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