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

Financial-Accounting-and-Reporting real exams

Exam Code: Financial-Accounting-and-Reporting

Exam Name: CPA Financial Accounting and Reporting Exam

Updated: Aug 13, 2026

Q & A: 100 Questions and Answers

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

SectionObjectives
Topic 1: Financial Reporting Framework- Conceptual framework for financial reporting
  • 1. Recognition and measurement principles
    • 2. Qualitative characteristics of financial information
      Topic 2: Financial Statements- Preparation and presentation
      • 1. Statement of financial position
        • 2. Statement of cash flows
          • 3. Statement of profit or loss and other comprehensive income
            Topic 3: Assets- Asset recognition and measurement
            • 1. Intangible assets
              • 2. Property, plant and equipment
                • 3. Impairment of assets
                  • 4. Inventories
                    Topic 4: Revenue Recognition- Revenue from contracts with customers
                    • 1. Identification of performance obligations
                      • 2. Timing of revenue recognition
                        Topic 5: Consolidated Financial Statements- Group accounting
                        • 1. Goodwill recognition and impairment
                          • 2. Non-controlling interests
                            • 3. Business combinations
                              Topic 6: Financial Statement Analysis and Interpretation- Analysis techniques
                              • 1. Trend and comparative analysis
                                • 2. Ratio analysis
                                  Topic 7: Liabilities and Equity- Financial instruments and obligations
                                  • 1. Equity instruments
                                    • 2. Borrowing costs
                                      • 3. Provisions and contingencies

                                        CPA Australia CPA Financial Accounting and Reporting Sample Questions:

                                        1. Which one of the following is a benefit of developing financial reporting standards using a conceptual framework?

                                        A) The interpretation of non-financial information is made easier.
                                        B) The interpretation of financial reporting standards by anybody would be easy.
                                        C) The financial statements based on these standards would be error-free.
                                        D) A financial reporting environment based on standardised principles would be created.


                                        2. A company purchased a machine 10 years ago for $143 890. It is expected that the machine will generate future revenues of $108 495. The machine could be scrapped for $81 232. An equivalent machine in the same condition would cost $94 950 to buy now. What is the deprival value of the asset?

                                        A) $35 395
                                        B) $108 495
                                        C) $94 950
                                        D) $81 232


                                        3. Historical cost accounting provides financial information that is

                                        A) relevant but may not be reliable for decision making.
                                        B) relevant for decision making.
                                        C) relevant and reliable for decision making.
                                        D) reliable but may not be relevant for decision making.


                                        4. 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 does not reflect knowledge whereas strong form efficiency considers knowledge in addition to publicly available information and past price movements.
                                        B) Semi-strong form efficiency addresses operational efficiency whereas strong form efficiency aims to address allocative efficiency.
                                        C) Semi-strong form efficiency reflects all past price movements whereas strong form efficiency reflects future share price movements.
                                        D) Semi-strong form efficiency does not reflect all publicly available information whereas strong form efficiency does incorporate all publicly available information.


                                        5. Published financial statements are regulated by

                                        A) International Financial Reporting Standards to ensure the provision of useful financial information to shareholders.
                                        B) rules to ensure the provision of consistent financial information to investors.
                                        C) accounting and legal rules to ensure the provision of relevant and reliable financial information to shareholders.
                                        D) shareholders who specify the framework for the provision of consistent and comparable financial information for decision-making.


                                        Solutions:

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

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