- Exam Code: Financial-Accounting-and-Reporting
- Exam Name: CPA Financial Accounting and Reporting Exam
- Certification Provider: CPA Australia
- Corresponding Certification:CPA Foundation Program
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CPA Australia CPA Financial Accounting and Reporting Sample Questions:
1. Which of the following represents a principal-agent relationship?
I.
shareholders-auditors
II.
shareholders-management
III.
security exchange-company
IV.
board of directors-employees
A) I, II and IV only
B) II, III and IV only
C) I, II, III and IV
D) I, II and III only
2. 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) capital providers.
C) management.
D) internal users.
3. Which one of these concepts suggests that stock prices react to new information almost instantly?
A) bargaining power
B) incentive substitution
C) market power
D) efficient market
4. Current cost accounting reflects an approach to capital maintenance based on maintaining which one of the following?
A) financial capability of the business
B) operating capability of the business
C) cost of assets in the business
D) profitability of the business
5. 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) historical cost accounting theory
B) normative accounting theory
C) positive accounting theory
D) general accounting theory
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: C |
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