CPA Australia Financial-Accounting-and-Reporting test insides dumps : CPA Financial Accounting and Reporting Exam

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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. In an efficient market, normally if interest rates rise, share prices will

A) fall since investors expect a higher return.
B) fall in anticipation of a reversal in the interest rate cycle.
C) rise due to the overall positive sentiment.
D) rise since banks invest their increased profits.

2. The ability of a company to pay its bills when and as they fall due is a measure of

A) solvency.
B) economic value.
C) compliance with the conceptual framework.
D) the true and fair view of the financial report.

3. 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 financial statements based on these standards would be error-free.
C) The interpretation of financial reporting standards by anybody would be easy.
D) A financial reporting environment based on standardised principles would be created.

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

A) Regulatory Framework.
B) Generally Accepted Accounting Principles.
C) Conceptual Framework.
D) International Financial Reporting Standards.

5. Venturer Ltd has received fees from venture capital activities and has engaged you as the accountant to prepare the financial report for 31 December 20X0. Unable to find a specific reference to venture capital fees in either the conceptual framework or the accounting standards, you establish the appropriate accounting treatment by

A) using your professional judgment and referring to generally accepted accounting principles and practice.
B) using your professional judgment and referring to the conceptual framework's definitions and recognition criteria.
C) consulting with the International Accounting Standards Board.
D) referring to the fundamental accounting assumptions and conventions.

Solutions: