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

Exam Code: Financial-Accounting-and-Reporting

Exam Name: CPA Financial Accounting and Reporting Exam

Updated: Sep 10, 2026

Q & A: 100 Questions and Answers

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

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

                                        CPA Australia CPA Financial Accounting and Reporting Sample Questions:

                                        Question #1

                                        The chairperson of XYZ Company is concerned about the readability of the annual financial report that is about to be published on its website. XYZ Company is obliged to comply with International Financial Reporting Standards, and the report contains all of the required financial statements, the auditor's report, corporate governance statements, declarations of accounting policy, explanatory notes and a section that addresses the company's corporate social responsibility program.
                                        The chairperson is wondering whether the report can be condensed. The issue that is concerning the chairperson is known as

                                        • A. the cost of compliance.
                                        • B. the costs of social responsibility reporting.
                                        • C. information overload.
                                        • D. the agency costs of monitoring.
                                        Answer: C
                                        Question #2

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

                                        • A. aggressive debt management
                                        • B. off balance sheet financing
                                        • C. window dressing
                                        • D. profit smoothing
                                        Answer: A
                                        Question #3

                                        In the context of a regulatory framework, a principles-based system

                                        • A. is a rule-driven approach.
                                        • B. provides a theoretical basis with broad terms of reference.
                                        • C. removes any element of judgement by providing clear requirements.
                                        • D. attempts to cover specific eventualities.
                                        Answer: B
                                        Question #4

                                        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. $94 950
                                        • B. $35 395
                                        • C. $81 232
                                        • D. $108 495
                                        Answer: A
                                        Question #5

                                        Which one of the following parties provides information to ensure that the financial statements show a true and fair view?

                                        • A. financial Institutions
                                        • B. tax consultants
                                        • C. directors of the company
                                        • D. shareholders
                                        Answer: C

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