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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. 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?

A) chairman's statement
B) director's report
C) corporate social responsibility report
D) corporate governance statement

2. In relation to financial statements, the 'true and fair override' indicates that

A) the true and fair requirement need not be complied with by certain industries.
B) departure is allowed from accounting standards under specific instances to show a fair presentation.
C) statements need not always be true and accurate.
D) accounting standards must be complied with under all circumstances.

3. Venturer Ltd has received fees from venture capital activities and has engaged you as the accountant to prepare the financial report for 31 December 20X0. Unable to find a specific reference to venture capital fees in either the conceptual framework or the accounting standards, you establish the appropriate accounting treatment by

A) using your professional judgment and referring to generally accepted accounting principles and practice.
B) using your professional judgment and referring to the conceptual framework's definitions and recognition criteria.
C) referring to the fundamental accounting assumptions and conventions.
D) consulting with the International Accounting Standards Board.

4. An example of voluntary reporting in Australia is a

A) statement of comprehensive income.
B) statement of financial position.
C) sustainability report.
D) statement of cash flows.

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

Solutions: