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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following financial statements helps provide information about factors that might affect an entity's liquidity or solvency?

A) statement of cash flows
B) notes to the financial statements
C) statement of changes in equity
D) statement of profit or loss and other comprehensive income

2. LMN Ltd recently changed the measurement base for their assets. They should I)treat this like a change in an estimate.
II)treat this like a change in the accounting policy.
III)disclose this in the notes to financial statements.

A) I only
B) I and III only
C) II and III only
D) III only

3. In a stock market that displays strong efficiency, share prices reflect all available

A) information about future expansion plans.
B) public and inside information.
C) information about past changes in share prices.
D) public information.

4. Which one of the following is not an Australian Securities Exchange (ASX) principle of good corporate governance?

A) Respect the rights of shareholders.
B) Safeguard the environment.
C) Promote ethical and responsible decision-making.
D) Remunerate fairly and responsibly.

5. Current cost accounting reflects an approach to capital maintenance based on maintaining which one of the following?

A) cost of assets in the business
B) operating capability of the business
C) profitability of the business
D) financial capability of the business

Solutions: