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

Financial-Accounting-and-Reporting Exam Questions
  • Exam Code: Financial-Accounting-and-Reporting
  • Exam Name: CPA Financial Accounting and Reporting Exam
  • Updated: Oct 04, 2026
  • Q & A: 100 Questions and Answers
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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:

SectionWeightObjectives
Business combinations13%- Accounting issues for business combinations
- Impairment and journal entries
- Consolidated financial statements
- Goodwill measurement and disclosure
- Non-controlling interest and control concepts
Analysis of financial statements10%- Financial ratio calculation and interpretation
- Limitations of financial statement analysis
The accounting theory15%- Recognition criteria per conceptual framework
- Historical cost vs other valuation methods
- Agency and contracting theories
Application of specific accounting standards22%- Intangible assets and journal entries
- Current and deferred income tax accounting
- Revenue recognition and ledger reconciliation
- Foreign currency transactions and translation
Financial statements15%- Statement of cash flows
- Discrepancy detection and correction
- Statement of profit or loss and other comprehensive income
- Statement of financial position
The financial reporting environment25%- Types of business entity and structure
- Users and developments impacting reporting
- Accounting regulation and GAAP/IFRS
- Conceptual framework and elements of financial statements
- Role of International Accounting Standards Board
- Regulatory environment and reporting requirements
- Accounting standards and policies

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

Question #1

A decision has been made to change the value of a major non-current asset, upon which depreciation is based, from original cost to a revalued amount. This results in a change in

  • A. measurement basis and does not need to be disclosed.
  • B. accounting estimate and must be disclosed.
  • C. accounting estimate and does not need to be disclosed.
  • D. measurement basis and must be disclosed.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #2

In individual countries, Generally Accepted Accounting Principles (GAAP) is primarily a combination of

  • A. national company law and local stock exchange requirements.
  • B. company law, accounting standards, local stock exchange requirements and international accounting standards.
  • C. national company law and national accounting standards.
  • D. national company law, national accounting standards and local stock exchange requirements.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #3

Which one of the following situations would result in either a new liability being recognised or an existing liability being increased?

  • A. A company establishes an asset revaluation reserve.
  • B. A company pays only half of an overdue invoice.
  • C. At the end of the reporting period, there are unpaid wages.
  • D. A company recognises the depreciation expense for the current period.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #4

The amount of cash or cash equivalents that could currently be obtained by selling an asset in an orderly disposal, refers to which basis of measurement?

  • A. present value
  • B. realisable value
  • C. historical cost
  • D. current cost
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

Which one of the following shows whether the financial statements of a company show a true and fair presentation of the financial performance of the company?

  • A. Statement of cash flows
  • B. Corporate Governance Statement
  • C. Auditor's Report
  • D. Director's Report
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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