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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. The amount of cash or cash equivalents that could currently be obtained by selling an asset in an orderly disposal, refers to which basis of measurement?

A) historical cost
B) realisable value
C) present value
D) current cost

2. Which one of the following examples would not represent an agency cost?

A) the cost of engaging an external auditor
B) the cost of preparing a financial report for shareholders
C) the cost of employing an internal auditor
D) the cost of preparing a cost-benefit report for a new project

3. Which one of the following is the correct treatment of sales?

A) Cash and credit sales are recorded in the receivables ledger prior to posting to the general ledger.
B) Credit sales are recorded in the receivables ledger prior to posting to the general ledger.
C) Credit sales are not recorded in the receivables ledger prior to posting to the general ledger.
D) Cash sales are recorded in the receivables ledger prior to posting to the general ledger.

4. Which one of the following financial statements helps provide information about factors that might affect an entity's liquidity or solvency?

A) statement of changes in equity
B) notes to the financial statements
C) statement of cash flows
D) statement of profit or loss and other comprehensive income

5. PLO Advertising Ltd (PLO) buys a new stretch limousine for $40 000. A number of individuals have expressed an interest in buying the limousine from PLO for $60 000. The board members decide that the limousine is worth between $65 000 and $70 000. What is the fair value of the limousine?

A) $60 000
B) $65 000
C) $70 000
D) $40 000

Solutions: