CPA Australia Financial-Accounting-and-Reporting Dumps Questions [2023] Pass for Financial-Accounting-and-Reporting Exam
Updated CPA Australia Study Guide Financial-Accounting-and-Reporting Dumps Questions
NEW QUESTION 53
A rules-based approach to standard setting
- A. ensures there are no conflicts within accounting standards as each issue is handled just once.
- B. prescribes standards that attempt to cover all eventualities a business may face.
- C. provides a broad framework for standard setting.
- D. helps a standard-setting body to prioritise matters.
Answer: B
NEW QUESTION 54
In relation to financial statements, the 'true and fair override' indicates that
- A. departure is allowed from accounting standards under specific instances to show a fair presentation.
- B. the true and fair requirement need not be complied with by certain industries.
- C. statements need not always be true and accurate.
- D. accounting standards must be complied with under all circumstances.
Answer: A
NEW QUESTION 55
A company sold some old operating equipment from its factory. After depreciation was accounted for, a small gain on sale was recorded. According to the revised IAS 1 Presentation of Financial Statements, this transaction will be shown as a separate item 'gain on sale of equipment'. This item will be shown in the statement of
- A. comprehensive income.
- B. changes in equity.
- C. financial position.
- D. cash flow.
Answer: A
NEW QUESTION 56
Which one of the following countries has the view that Generally Accepted Accounting Principles (GAAP) refers to accounting practices which are regarded as permissible by the accounting profession?
- A. United States of America
- B. Canada
- C. Australia
- D. United Kingdom
Answer: D
NEW QUESTION 57
In a stock market that displays strong efficiency, share prices reflect all available
- A. information about future expansion plans.
- B. public and inside information.
- C. public information.
- D. information about past changes in share prices.
Answer: B
NEW QUESTION 58
To be relevant, financial information has to
I)be provided in a timely manner.
II)comply with the going concern assumption.
III)have predictive and/or confirmatory value.
IV)exclude computations that are difficult to understand.
- A. II and III only
- B. I and II only
- C. III and IV only
- D. I and III only
Answer: D
NEW QUESTION 59
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. information overload.
- B. the agency costs of monitoring.
- C. the costs of social responsibility reporting.
- D. the cost of compliance.
Answer: A
NEW QUESTION 60
A company's financial report is compliant with International Financial Reporting Standards. Where in the report would an investor find the amount of money received by the company for investment activities?
- A. statement of cash flows
- B. statement of financial position
- C. statement of changes in equity
- D. statement of comprehensive income
Answer: A
NEW QUESTION 61
According to the Australian Accounting Standards Board, which one of the following is a benefit of adopting International Financial Reporting Standards (IFRSs)?
- A. to enable the national government to control activities of foreign multinationals
- B. to become a resource for developing nations who can easily adopt IFRSs as a full set of standards
- C. to increase foreign investors' understanding of local financial reports
- D. to make it easier for tax authorities to calculate taxes on investors' overseas income
Answer: C
NEW QUESTION 62
Which one of the following is not a function of the trustees of the International Financial Reporting Standards Foundation (IFRS Foundation)?
- A. providing suggestions on technical matters relating to accounting standards
- B. appointing the members of the International Accounting Standards Board (IASB)
- C. promoting the application of International Financial Reporting Standards (IFRSs)
- D. ensuring the financing of the International Accounting Standards Board (IASB)
Answer: A
NEW QUESTION 63
Which one of the following includes social reporting guidelines?
- A. Global Reporting Initiative (GRI)
- B. Generally Accepted Accounting Principles (GAAP)
- C. International Accounting Standards (IAS)
- D. International Financial Reporting Standards (IFRS)
Answer: A
NEW QUESTION 64
Which one of the following examples would not represent an agency cost?
- A. the cost of preparing a financial report for shareholders
- B. the cost of employing an internal auditor
- C. the cost of engaging an external auditor
- D. the cost of preparing a cost-benefit report for a new project
Answer: D
NEW QUESTION 65
Which one of the following contributes to an efficient capital market?
- A. stock markets ensuring that companies do not overcharge for their products
- B. stock markets being managed by directors of companies that are listed on the stock market
- C. having stock markets in every country
- D. information about the stock market can be obtained cheaply
Answer: D
NEW QUESTION 66
The objective of the International Accounting Standards Board (IASB) is to
- A. oversee the standard setting process and International Financial Reporting Standards Advisory Council.
- B. enforce International Financial Reporting Standards.
- C. provide strategic advice to the International Financial Reporting Standards Advisory Council.
- D. set International Financial Reporting Standards.
Answer: D
NEW QUESTION 67
According to the IASB's Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of
- A. internal users.
- B. capital providers.
- C. management.
- D. employees.
Answer: B
NEW QUESTION 68
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