CPA Australia Financial-Accounting-and-Reporting Q&A - in .pdf

  • Financial-Accounting-and-Reporting pdf
  • Exam Code: Financial-Accounting-and-Reporting
  • Exam Name: CPA Financial Accounting and Reporting Exam
  • Updated: Sep 25, 2026
  • Q & A: 100 Questions and Answers
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  • Updated: Sep 25, 2026
  • Q & A: 100 Questions and Answers
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  • Exam Code: Financial-Accounting-and-Reporting
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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:

SectionWeightObjectives
Business Combinations and Group Accounting20%- Business combinations and goodwill
- Non-controlling interests
- Consolidation principles and procedures
Role and Regulatory Framework of Financial Reporting15%- Conceptual framework and qualitative characteristics
- Business entities and reporting obligations
- Regulatory environment and standards setting
Financial Instruments12%- Recognition, derecognition and disclosure
- Classification and measurement
Revenue, Provisions and Liabilities14%- Revenue from contracts with customers
- Provisions, contingent liabilities and assets
Impairment of Assets6%- Impairment indicators and recoverable amount
- Impairment testing and recognition
Presentation of Financial Statements15%- Statement of cash flows and notes
- Statement of profit or loss and OCI
- Statement of financial position
Income Taxes18%- Current and deferred tax calculation
- Tax effects in financial statements

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

Question #1

Which one of the following would be included in a statement of financial position?

  • A. retained earnings
  • B. proceeds from long term borrowings
  • C. finance costs
  • D. cost of sales
Reveal Solution  Discussion  0

Correct Answer: A  πŸ—³οΈ

Question #2

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

  • A. departure is allowed from accounting standards under specific instances to show a fair presentation.
  • B. accounting standards must be complied with under all circumstances.
  • C. the true and fair requirement need not be complied with by certain industries.
  • D. statements need not always be true and accurate.
Reveal Solution  Discussion  0

Correct Answer: A  πŸ—³οΈ

Question #3

Which accounting theory is best described by the statement 'An approach to accounting is one where a theory is thought of as a body of knowledge that explains and attempts to predict actual accounting practice'?

  • A. normative accounting theory
  • B. historical cost accounting theory
  • C. general accounting theory
  • D. positive accounting theory
Reveal Solution  Discussion  0

Correct Answer: D  πŸ—³οΈ

Question #4

Which one of the following methods is not used for 'creative accounting'?

  • A. window dressing
  • B. off balance sheet financing
  • C. aggressive debt management
  • D. profit smoothing
Reveal Solution  Discussion  0

Correct Answer: C  πŸ—³οΈ

Question #5

A company purchased a machine 10 years ago for $143 890. It is expected that the machine will generate future revenues of $108 495. The machine could be scrapped for $81 232. An equivalent machine in the same condition would cost $94 950 to buy now. What is the deprival value of the asset?

  • A. $81 232
  • B. $35 395
  • C. $94 950
  • D. $108 495
Reveal Solution  Discussion  0

Correct Answer: C  πŸ—³οΈ

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