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

  • Exam Code: Financial-Accounting-and-Reporting
  • Exam Name: CPA Financial Accounting and Reporting Exam
  • Updated: Sep 11, 2026
  • Q & A: 100 Questions and Answers

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

SectionWeightObjectives
Topic 1: Business combinations13%- Goodwill measurement and disclosure
- Accounting issues for business combinations
- Non-controlling interest and control concepts
- Impairment and journal entries
- Consolidated financial statements
Topic 2: The financial reporting environment25%- Conceptual framework and elements of financial statements
- Accounting standards and policies
- Users and developments impacting reporting
- Regulatory environment and reporting requirements
- Types of business entity and structure
- Accounting regulation and GAAP/IFRS
- Role of International Accounting Standards Board
Topic 3: Application of specific accounting standards22%- Foreign currency transactions and translation
- Revenue recognition and ledger reconciliation
- Current and deferred income tax accounting
- Intangible assets and journal entries
Topic 4: Financial statements15%- Statement of profit or loss and other comprehensive income
- Discrepancy detection and correction
- Statement of financial position
- Statement of cash flows
Topic 5: Analysis of financial statements10%- Financial ratio calculation and interpretation
- Limitations of financial statement analysis
Topic 6: The accounting theory15%- Recognition criteria per conceptual framework
- Historical cost vs other valuation methods
- Agency and contracting theories

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

Question #1

According to the IASB Conceptual Framework, income is an increase in economic benefits in the form of I)inflows.
II)decreases of liabilities.
III)enhancements of assets.
IV)contributions from equity holders.

  • A. I, III and IV only
  • B. I, II and III only
  • C. I, II and IV only
  • D. II, III and IV only
Answer: B
Question #2

As per the International Accounting Standards Board conceptual framework, which of the following holds the primary responsibility for preparing and presenting financial statements?
I)owners
II)auditors
III)directors

  • A. I only
  • B. I and II only
  • C. II and III only
  • D. III only
Answer: D
Question #3

According to IASB's Conceptual Framework, an expense is a decrease in economic benefits in the form of
I.
outflows.
II.
decreases of assets.
III.
incurrences of liabilities.
IV.
contributions to equity holders.

  • A. I, III and IV only
  • B. I, II and III only
  • C. I, II and IV only
  • D. II, III and IV only
Answer: B
Question #4

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

  • A. They are bulky to store compared to computer systems.
  • B. Productivity in manual systems is lower than computer systems.
  • C. It is easy to make corrections.
  • D. Risk of error is greater and the quality of outputs is inferior.
Answer: C
Question #5

An element is recognised in the statement of financial position or statement of comprehensive income if
I.
the value of the item can be measured reliably.
II.
the value of the item can be measured accurately.
III.
it is certain that there will be future economic benefits associated with the item.
IV.
it is probable that there will be future economic benefits associated with the item.
Which of the above options are correct?

  • A. I and IV only
  • B. I and III only
  • C. II and III only
  • D. III and IV only
Answer: A

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