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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following includes social reporting guidelines?

A) Global Reporting Initiative (GRI)
B) Generally Accepted Accounting Principles (GAAP)
C) International Accounting Standards (IAS)
D) International Financial Reporting Standards (IFRS)

2. Which one of the following describes the key advantage of the manual system of accounting?

A) The quality of output is not necessarily an issue.
B) Processing is maintained at a reasonable speed even while dealing with large volumes of data.
C) A thorough understanding of the business can be gained through it.
D) Corrections are easily managed as updating or recreating the whole document is not difficult.

3. Which one of the following is not a function of the trustees of the International Financial Reporting Standards Foundation (IFRS Foundation)?

A) ensuring the financing of the International Accounting Standards Board (IASB)
B) appointing the members of the International Accounting Standards Board (IASB)
C) providing suggestions on technical matters relating to accounting standards
D) promoting the application of International Financial Reporting Standards (IFRSs)

4. Which one of the following is a benefit of developing financial reporting standards using a conceptual framework?

A) The interpretation of financial reporting standards by anybody would be easy.
B) The financial statements based on these standards would be error-free.
C) A financial reporting environment based on standardised principles would be created.
D) The interpretation of non-financial information is made easier.

5. The objective of the International Accounting Standards Board (IASB) is to

A) set International Financial Reporting Standards.
B) oversee the standard setting process and International Financial Reporting Standards Advisory Council.
C) provide strategic advice to the International Financial Reporting Standards Advisory Council.
D) enforce International Financial Reporting Standards.

Solutions: