1. Home
  2. CPA Australia
  3. No Cert Assigned
  4. Financial-Accounting-and-Reporting
  5. CPA Financial Accounting and Reporting Exam Questions and Answers

Pass the CPA Australia No Cert Assigned Financial-Accounting-and-Reporting Questions and answers with CertsForce

 CPA Australia Exams      Go to Exam Detail      Get Premium Access
Viewing page 2 out of 3 pages
Viewing questions 11-20 out of questions
Questions # 11:

Which one of the following reports sets out how directors have run a company and if they implemented proper procedures to deal with matters like accountability, audits, directors' roles and responsibilities, internal controls and relations with shareholders?

Options:
A.

director's report

B.

chairman's statement

C.

corporate governance statement

D.

corporate social responsibility report

Questions # 12:

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

Options:
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.

Questions # 13:

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

Options:
A.

The quality of output is not necessarily an issue.

B.

A thorough understanding of the business can be gained through it.

C.

Corrections are easily managed as updating or recreating the whole document is not difficult.

D.

Processing is maintained at a reasonable speed even while dealing with large volumes of data.

Questions # 14:

Which one of these is a disadvantage of a conceptual framework?

Options:
A.

It replaces the established principles.

B.

It mandates the formats of various financial statements.

C.

A single framework is not suitable for all users of financial statements.

D.

It increases the chances of political interference in the development of accounting standards.

Questions # 15:

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

Options:
A.

The interpretation of non-financial information is made easier.

B.

The financial statements based on these standards would be error-free.

C.

The interpretation of financial reporting standards by anybody would be easy.

D.

A financial reporting environment based on standardised principles would be created.

Questions # 16:

The Framework for the Preparation and Presentation of Financial Statements which assists the development of the International Financial Reporting Standards (IFRS) was originally approved by the

Options:
A.

IFRS Interpretations Committee (IFRIC).

B.

International Federation of Accountants (IFAC).

C.

International Accounting Standards Board (IASB).

D.

International Accounting Standards Committee (IASC).

Questions # 17:

Which one of the following examples would not represent an agency cost?

Options:
A.

the cost of engaging an external auditor

B.

the cost of employing an internal auditor

C.

the cost of preparing a financial report for shareholders

D.

the cost of preparing a cost-benefit report for a new project

Questions # 18:

Which one of the following includes social reporting guidelines?

Options:
A.

Global Reporting Initiative (GRI)

B.

International Accounting Standards (IAS)

C.

Generally Accepted Accounting Principles (GAAP)

D.

International Financial Reporting Standards (IFRS)

Questions # 19:

Which one of the following statements regarding the IASB's Conceptual Framework for Financial Reporting is correct?

Options:
A.

It overrides any local or international accounting standard.

B.

It specifies the concepts that underlie the preparation and presentation of special purpose financial statements.

C.

It specifies the concepts that underlie the preparation and presentation of general purpose financial statements.

D.

It specifies the concepts that underlie the preparation and presentation of only consolidated financial statements.

Questions # 20:

An agent is answerable under the contract to the agent's principal and must account for the resources of the agent's principal and the money the agent has gained working on the principal's behalf. In the context of agency, this definition describes an agent's

Options:
A.

contract.

B.

relationship.

C.

fiduciary duty.

D.

accountability.

Viewing page 2 out of 3 pages
Viewing questions 11-20 out of questions