CPA Australia Financial-Accounting-and-Reporting : CPA Financial Accounting and Reporting Exam

Financial-Accounting-and-Reporting real exams

Exam Code: Financial-Accounting-and-Reporting

Exam Name: CPA Financial Accounting and Reporting Exam

Updated: Jul 24, 2026

Q & A: 100 Questions and Answers

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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: The financial reporting environment25%- Accounting standards and policies
- Regulatory environment and reporting requirements
- Role of International Accounting Standards Board
- Conceptual framework and elements of financial statements
- Users and developments impacting reporting
- Accounting regulation and GAAP/IFRS
- Types of business entity and structure
Topic 2: Analysis of financial statements10%- Limitations of financial statement analysis
- Financial ratio calculation and interpretation
Topic 3: Business combinations13%- Impairment and journal entries
- Accounting issues for business combinations
- Non-controlling interest and control concepts
- Goodwill measurement and disclosure
- Consolidated financial statements
Topic 4: Financial statements15%- Statement of profit or loss and other comprehensive income
- Statement of financial position
- Statement of cash flows
- Discrepancy detection and correction
Topic 5: Application of specific accounting standards22%- Intangible assets and journal entries
- Revenue recognition and ledger reconciliation
- Foreign currency transactions and translation
- Current and deferred income tax accounting
Topic 6: The accounting theory15%- Agency and contracting theories
- Recognition criteria per conceptual framework
- Historical cost vs other valuation methods

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following is not a function of the trustees of the International Financial Reporting Standards Foundation (IFRS Foundation)?

A) promoting the application of International Financial Reporting Standards (IFRSs)
B) ensuring the financing of the International Accounting Standards Board (IASB)
C) providing suggestions on technical matters relating to accounting standards
D) appointing the members of the International Accounting Standards Board (IASB)


2. Which one of the following statements is correct in relation to presenting the financial position of an entity?

A) Solvency is the availability of cash over the long-term, while liquidity is the availability of funds over the short-term to meet financial commitments as they fall due.
B) Liquidity is the ability to repay long-term financial commitments, whereas solvency is the ability to repay short-term commitments.
C) Solvency is the availability of total assets over a long-term, while liquidity is the availability of total assets over the short-term to meet financial commitments as they fall due.
.
D) Liquidity represents cash holdings, while solvency is long-term profitability.


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

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


4. You assumed the role as the Chairperson of the Board of Directors of Daylight Ltd. As you start to write your first directors' report, which one of the following areas are you not required to include in your report?

A) Review of operations of Daylight during the year just ended and any likely developments in the future that may impact Daylight.
B) Details regarding any significant changes to Daylight's state of affairs for the year that just ended.
C) Details regarding accounting policies pursued by Daylight in preparation of its financial statements.
D) Details of any dividends paid or proposed.


5. Which one of the following statements is correct?

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


Solutions:

Question # 1
Answer: C
Question # 2
Answer: A
Question # 3
Answer: B
Question # 4
Answer: C
Question # 5
Answer: B

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