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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following statements is not correct in respect of manual accounting systems?

A) It is easy to make corrections.
B) They are bulky to store compared to computer systems.
C) Risk of error is greater and the quality of outputs is inferior.
D) Productivity in manual systems is lower than computer systems.

2. In a strong efficient market, the finance manager will

A) develop strategies to disclose the company's profit or loss.
B) analyse historical data on takeover targets.
C) employ analysts to determine the best time to issue shares.
D) maximise the net present value of the firm's investments.

3. Current cost accounting reflects an approach to capital maintenance based on maintaining which one of the following?

A) financial capability of the business
B) cost of assets in the business
C) operating capability of the business
D) profitability of the business

4. The accounting policies used by companies must result in financial reports that are

A) signed by the CEO or equivalent.
B) comparable with previous years' reports.
C) easy to read.
D) independently audited.

5. Which one of the following is not a principal motivation for creative accounting?

A) benefits from shares and share options
B) personal incentives
C) public good
D) bonus-related pay

Solutions: