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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. The objective of the International Accounting Standards Board (IASB) is to

A) provide strategic advice to the International Financial Reporting Standards Advisory Council.
B) set International Financial Reporting Standards.
C) enforce International Financial Reporting Standards.
D) oversee the standard setting process and International Financial Reporting Standards Advisory Council.

2. In a stock market that displays strong efficiency, share prices reflect all available

A) information about past changes in share prices.
B) information about future expansion plans.
C) public and inside information.
D) public information.

3. In applying accounting standards, an entity develops accounting policies that ensure that the financial statements present

A) comparable and accurate financial information to all shareholders.
B) understandable and clear financial information to all interested shareholders.
C) relevant and reliable financial information.
D) relevant and correct financial information to all interested shareholders.

4. Which one of these is a key principle of good corporate governance?

A) non-disclosure of directors' agency relationship with the company
B) restriction of shareholders' rights in decision-making
C) effective communication with shareholders
D) effective management of the employees of the company

5. Which of the following are the stated objectives of the International Accounting Standards Board (IASB)?
I)Enforce accounting standards.
II)Develop accounting standards.
III)Work for convergence of accounting standards.

A) I only
B) I and II only
C) II and III only
D) III only

Solutions: