CPA Australia CPA Financial Accounting and Reporting - Financial-Accounting-and-Reporting FREE EXAM DUMPS QUESTIONS & ANSWERS]

Question 1

Which one of the following includes social reporting guidelines?

A. Generally Accepted Accounting Principles (GAAP) B. Global Reporting Initiative (GRI) C. International Accounting Standards (IAS) D. International Financial Reporting Standards (IFRS)

Discussion 0

Correct Answer: B Vote an answer

Question 2

The body that is part of the international standard-setting framework reporting to the International Financial Reporting Standards Foundation (IFRS Foundation) is the

A. Centre on Transnational Corporations. B. International Accounting Standards Committee. C. International Accounting Standards Board. D. International Accounting Board.

Discussion 0

Correct Answer: C Vote an answer

Question 3

A decrease in assets is most likely to be recognised in the financial report as

A. revenue earned. B. a change in equity. C. an expense. D. a liability.

Discussion 0

Correct Answer: C Vote an answer

Question 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.

Discussion 0

Correct Answer: A Vote an answer

Question 5

The two fundamental qualitative characteristics of the financial information are

A. relevance and faithful representation. B. faithful representation and comparability. C. verifiability and relevance. D. relevance and comparability.

Discussion 0

Correct Answer: A Vote an answer

Question 6

The International Federation of Accountants (IFAC) was established by

A. the International Accounting Standards Board. B. the Organization for Economic Co-operation & Development. C. various professional accounting bodies. D. the United Nations.

Discussion 0

Correct Answer: C Vote an answer

Question 7

Which one of the following statements is not correct in respect of manual accounting systems?

A. Productivity in manual systems is lower than computer systems. B. They are bulky to store compared to computer systems. C. It is easy to make corrections. D. Risk of error is greater and the quality of outputs is inferior.

Discussion 0

Correct Answer: C Vote an answer

Question 8

According to the IASB's Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of

A. capital providers. B. management. C. employees. D. internal users.

Discussion 0

Correct Answer: A Vote an answer

Question 9

A statement of comprehensive income reports on

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

Discussion 0

Correct Answer: A Vote an answer

Question 10

Financial managers will benefit in a strongly efficient market by

A. being able to take more risks without shareholders' consent. B. having their shareholders be tolerant of low profits if higher profits are expected in the future. C. having their shareholders invest more money into expanding the company's operations. D. being able to decide what information needs to be made available to shareholders.

Discussion 0

Correct Answer: B Vote an answer