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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

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

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

2. Published financial statements are regulated by

A) accounting and legal rules to ensure the provision of relevant and reliable financial information to shareholders.
B) shareholders who specify the framework for the provision of consistent and comparable financial information for decision-making.
C) International Financial Reporting Standards to ensure the provision of useful financial information to shareholders.
D) rules to ensure the provision of consistent financial information to investors.

3. Which one of the following is not a principal motivation for creative accounting?

A) benefits from shares and share options
B) bonus-related pay
C) personal incentives
D) public good

4. In the context of a regulatory framework, a principles-based system

A) provides a theoretical basis with broad terms of reference.
B) removes any element of judgement by providing clear requirements.
C) is a rule-driven approach.
D) attempts to cover specific eventualities.

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

A) profit smoothing
B) off balance sheet financing
C) window dressing
D) aggressive debt management

Solutions: