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

  • Exam Code: Financial-Accounting-and-Reporting
  • Exam Name: CPA Financial Accounting and Reporting Exam
  • Updated: Aug 14, 2026
  • Q & A: 100 Questions and Answers

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

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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Financial managers will benefit in a strongly efficient market by

A) having their shareholders be tolerant of low profits if higher profits are expected in the future.
B) being able to decide what information needs to be made available to shareholders.
C) having their shareholders invest more money into expanding the company's operations.
D) being able to take more risks without shareholders' consent.


2. Which one of the following bodies makes accounting standards in Australia?

A) FRC
B) AASB
C) IASB
D) ASIC


3. Which one of the following would be included in a statement of financial position?

A) cost of sales
B) retained earnings
C) finance costs
D) proceeds from long term borrowings


4. 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 Kingdom
B) Canada
C) Australia
D) United States of America


5. Which one of the following is the correct treatment of sales?

A) Cash and credit sales are recorded in the receivables ledger prior to posting to the general ledger.
B) Credit sales are not recorded in the receivables ledger prior to posting to the general ledger.
C) Cash sales are recorded in the receivables ledger prior to posting to the general ledger.
D) Credit sales are recorded in the receivables ledger prior to posting to the general ledger.


Solutions:

Question # 1
Answer: A
Question # 2
Answer: B
Question # 3
Answer: B
Question # 4
Answer: A
Question # 5
Answer: D

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