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CPA Australia CPA Financial Accounting and Reporting Sample Questions:
1. Which one of the following is an accurate definition of fair value of an asset?
A) The price for which an asset could be sold in an orderly transaction between market participants at the measurement date.
B) The price for which an asset could be sold net of disposal costs.
C) The cost of replacing an asset with an identical item.
D) The amount yet to be written off over the remainder of the asset's useful life.
2. 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) director's report
B) chairman's statement
C) corporate governance statement
D) corporate social responsibility report
3. Which one of these is a key principle of good corporate governance?
A) restriction of shareholders' rights in decision-making
B) effective management of the employees of the company
C) non-disclosure of directors' agency relationship with the company
D) effective communication with shareholders
4. According to the IASB Conceptual Framework, income is an increase in economic benefits in the form of I)inflows.
II)decreases of liabilities.
III)enhancements of assets.
IV)contributions from equity holders.
A) I, II and IV only
B) I, II and III only
C) II, III and IV only
D) I, III and IV only
5. You assumed the role as the Chairperson of the Board of Directors of Daylight Ltd. As you start to write your first directors' report, which one of the following areas are you not required to include in your report?
A) Details regarding any significant changes to Daylight's state of affairs for the year that just ended.
B) Details regarding accounting policies pursued by Daylight in preparation of its financial statements.
C) Review of operations of Daylight during the year just ended and any likely developments in the future that may impact Daylight.
D) Details of any dividends paid or proposed.
Solutions:
Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: B |