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CPA Financial Accounting and Reporting Exam

Last Update 19 hours ago Total Questions : 100

The CPA Financial Accounting and Reporting Exam content is now fully updated, with all current exam questions added 19 hours ago. Deciding to include Financial-Accounting-and-Reporting practice exam questions in your study plan goes far beyond basic test preparation.

You'll find that our Financial-Accounting-and-Reporting exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these Financial-Accounting-and-Reporting sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any CPA Financial Accounting and Reporting Exam practice test comfortably within the allotted time.

Question # 21

A statement of generally accepted theoretical principles which form the frame of reference for financial reporting refers to the

A.

Regulatory Framework.

B.

Conceptual Framework.

C.

Generally Accepted Accounting Principles.

D.

International Financial Reporting Standards.

Question # 22

XYZ Ltd is listed on the Australian Securities Exchange (ASX).  Which one of the following reports is the company required to prepare as a part of its annual financial report?

A.

sustainability report

B.

chairman's statement

C.

management commentary

D.

corporate governance statement

Question # 23

Restrictions on the scope of a specific accounting standard are stated in

A.

that specific standard.

B.

the IASB's Conceptual Framework.

C.

the explanatory materials provided by the AASB.

D.

various Statements of Accounting Concepts (SACs) issued by the AASB.

Question # 24

When business managers seek detailed information about the profitability or efficiency of different parts of their operations, they would find the most useful information in

A.

the annual financial report.

B.

the company's accounting policies.

C.

various management accounting reports.

D.

financial statements as specified by IAS 1 Presentation of Financial Statements.

Question # 25

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

A.

International Accounting Board.

B.

Centre on Transnational Corporations.

C.

International Accounting Standards Board.

D.

International Accounting Standards Committee.

Question # 26

Which one of the following statements differentiates semi-strong form efficiency from strong form efficiency in the context of the efficient market hypothesis?

A.

Semi-strong form efficiency addresses operational efficiency whereas strong form efficiency aims to address allocative efficiency.

B.

Semi-strong form efficiency reflects all past price movements whereas strong form efficiency reflects future share price movements.

C.

Semi-strong form efficiency does not reflect all publicly available information whereas strong form efficiency does incorporate all publicly available information.

D.

Semi-strong form efficiency does not reflect knowledge whereas strong form efficiency considers knowledge in addition to publicly available information and past price movements.

Question # 27

Which one of the following is an advantage of current purchasing power accounting?

A.

It enables raw data to be just easily verifiable but not auditable.

B.

It provides a stable monetary unit that values profit and capital.

C.

It provides a clear use of indices which approximates the measurement of value.

D.

It supposes that value of net assets clearly reflects general goods and services are bought once assets were released.

Question # 28

Which one of the following situations would result in either a new liability being recognised or an existing liability being increased?

A.

A company pays only half of an overdue invoice.

B.

A company establishes an asset revaluation reserve.

C.

At the end of the reporting period, there are unpaid wages.

D.

A company recognises the depreciation expense for the current period.

Question # 29

An agent is answerable under the contract to the agent's principal and must account for the resources of the agent's principal and the money the agent has gained working on the principal's behalf. In the context of agency, this definition describes an agent's

A.

contract.

B.

relationship.

C.

fiduciary duty.

D.

accountability.

Question # 30

Which one of the following bodies makes accounting standards in Australia?

A.

ASIC

B.

FRC

C.

IASB

D.

AASB

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