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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. A decrease in assets is most likely to be recognised in the financial report as

A) a liability.
B) an expense.
C) a change in equity.
D) revenue earned.

2. The IASB evaluates the merits of adding a potential item to its agenda mainly by reference to the needs of

A) tax agencies.
B) regulatory authorities.
C) investors.
D) suppliers.

3. A statement of generally accepted theoretical principles which form the frame of reference for financial reporting refers to the

A) Conceptual Framework.
B) Regulatory Framework.
C) International Financial Reporting Standards.
D) Generally Accepted Accounting Principles.

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

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

Solutions: