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: Aug 13, 2026
  • Q & A: 100 Questions and Answers

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

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

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

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

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


2. Which one of the following practices is not considered creative accounting?

A) profit smoothing
B) aggressive earnings management
C) window dressing
D) trading in derivatives


3. Which one of these is a key principle of good corporate governance?

A) non-disclosure of directors' agency relationship with the company
B) effective communication with shareholders
C) effective management of the employees of the company
D) restriction of shareholders' rights in decision-making


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

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


5. JK Ltd intentionally over-valued its closing inventories to increase profitability for the year 20X8. This would help them to better price a planned share issue in 20X9. By doing this they have breached the concept of

A) neutrality.
B) understandability.
C) substance over form.
D) completeness.


Solutions:

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

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