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

Financial-Accounting-and-Reporting

Exam Code: Financial-Accounting-and-Reporting

Exam Name: CPA Financial Accounting and Reporting Exam

Updated: Sep 08, 2026

Q & A: 100 Questions and Answers

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

SectionWeightObjectives
Topic 1: Role and Regulatory Framework of Financial Reporting15%- Conceptual framework and qualitative characteristics
- Business entities and reporting obligations
- Regulatory environment and standards setting
Topic 2: Financial Instruments12%- Recognition, derecognition and disclosure
- Classification and measurement
Topic 3: Revenue, Provisions and Liabilities14%- Revenue from contracts with customers
- Provisions, contingent liabilities and assets
Topic 4: Income Taxes18%- Tax effects in financial statements
- Current and deferred tax calculation
Topic 5: Presentation of Financial Statements15%- Statement of cash flows and notes
- Statement of financial position
- Statement of profit or loss and OCI
Topic 6: Impairment of Assets6%- Impairment indicators and recoverable amount
- Impairment testing and recognition
Topic 7: Business Combinations and Group Accounting20%- Non-controlling interests
- Business combinations and goodwill
- Consolidation principles and procedures

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

Question #1

Which one of the following is an accurate definition of fair value of an asset?

A. The price for which an asset could be sold in an orderly transaction between market participants at the measurement date.
B. The cost of replacing an asset with an identical item.
C. The amount yet to be written off over the remainder of the asset's useful life.
D. The price for which an asset could be sold net of disposal costs.


Question #2

PLO Advertising Ltd (PLO) buys a new stretch limousine for $40 000. A number of individuals have expressed an interest in buying the limousine from PLO for $60 000. The board members decide that the limousine is worth between $65 000 and $70 000. What is the fair value of the limousine?

A. $60 000
B. $40 000
C. $65 000
D. $70 000


Question #3

In an efficient market, normally if interest rates rise, share prices will

A. rise due to the overall positive sentiment.
B. fall in anticipation of a reversal in the interest rate cycle.
C. fall since investors expect a higher return.
D. rise since banks invest their increased profits.


Question #4

Which form of capital market efficiency exists when share prices on the stock market reflect all information whether public or not?

A. information processing efficiency
B. allocative efficiency
C. strong form efficiency
D. semi-strong form efficiency


Question #5

Financial information is reliable if it
I)prefers substance over legal form.
II)is neutral and without any material error.
III)is complete and has been made with prudence.
IV)is understandable to those with no knowledge of accounting.

A. II, III and IV only
B. I, III and IV only
C. I, II and IV only
D. I, II and III only


Solutions:

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

Related Certifications
CPA Foundation Program
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