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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Liquidity of a company is based on its ability to

A) pay dividends to shareholders.
B) meet short term commitments.
C) meet long term commitments.
D) buy back shares.

2. The objective of the International Accounting Standards Board (IASB) is to

A) set International Financial Reporting Standards.
B) enforce International Financial Reporting Standards.
C) provide strategic advice to the International Financial Reporting Standards Advisory Council.
D) oversee the standard setting process and International Financial Reporting Standards Advisory Council.

3. Which one of the following shows whether the financial statements of a company show a true and fair presentation of the financial performance of the company?

A) Director's Report
B) Statement of cash flows
C) Corporate Governance Statement
D) Auditor's Report

4. A statement of comprehensive income reports on

A) changes in financial position.
B) financial position.
C) financial performance.
D) solvency.

5. Which one of the following statements is correct?

A) Accounting standards provide the basic knowledge upon which the conceptual framework is developed.
B) Australian accounting standards are based on the US GAAP.
C) Accounting standards prescribe the possible accounting treatments.
D) Accounting standards are developed and maintained using a consultative process with the OECD.

Solutions: