Mar-2023 CPA Australia Financial-Accounting-and-Reporting Actual Questions and Braindumps [Q25-Q47]

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Mar-2023 CPA Australia Financial-Accounting-and-Reporting Actual Questions and Braindumps

Financial-Accounting-and-Reporting Dumps To Pass CPA Australia Exam in 24 Hours – ExamCost

NEW QUESTION 25
Which one of the following bases of measurement is used to implement an approach to capital maintenance based on maintaining the operating capability of a business?

fair value

current value

deprival value

current purchasing power

NEW QUESTION 26
Which one of the following bodies makes accounting standards in Australia?

ASIC

FRC

IASB

AASB

NEW QUESTION 27
According to the IASB’s Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of

employees.

management.

internal users.

capital providers.

NEW QUESTION 28
Which of the following represents a principal-agent relationship?
I.
shareholders-auditors
II.
shareholders-management
III.
security exchange-company
IV.
board of directors-employees

I, II and III only

I, II and IV only

II, III and IV only

I, II, III and IV

NEW QUESTION 29
Which one of the following is not an advantage of accounting regulation?

It provides quality of information in and across financial statements.

It provides flexibility in the way accounting information is presented to users.

It provides the required accounting information to all necessary shareholders.

It instils public confidence in the accounting system employed in commerce and industry.

NEW QUESTION 30
Which one of the following shows whether the financial statements of a company show a true and fair presentation of the financial performance of the company?

Auditor’s Report

Director’s Report

Statement of cash flows

Corporate Governance Statement

NEW QUESTION 31
Which one of the following would be included in the statement of financial position?

depreciation

deferred tax

distribution costs

gains on property valuations

NEW QUESTION 32
The amount of cash or cash equivalents that could currently be obtained by selling an asset in an orderly disposal, refers to which basis of measurement?

current cost

present value

historical cost

realisable value

NEW QUESTION 33
An agent is answerable under the contract to the agent’s principal and must account for the resources of the agent’s principal and the money the agent has gained working on the principal’s behalf. In the context of agency, this definition describes an agent’s

contract.

relationship.

fiduciary duty.

accountability.

NEW QUESTION 34
Restrictions on the scope of a specific accounting standard are stated in

that specific standard.

the IASB’s Conceptual Framework.

the explanatory materials provided by the AASB.

various Statements of Accounting Concepts (SACs) issued by the AASB.

NEW QUESTION 35
The Framework for the Preparation and Presentation of Financial Statements which assists the development of the International Financial Reporting Standards (IFRS) was originally approved by the

IFRS Interpretations Committee (IFRIC).

International Federation of Accountants (IFAC).

International Accounting Standards Board (IASB).

International Accounting Standards Committee (IASC).

NEW QUESTION 36
The ability of a company to pay its bills when and as they fall due is a measure of

solvency.

economic value.

compliance with the conceptual framework.

the true and fair view of the financial report.

NEW QUESTION 37
The IASB evaluates the merits of adding a potential item to its agenda mainly by reference to the needs of

investors.

suppliers.

tax agencies.

regulatory authorities.

NEW QUESTION 38
Which one of the following parties provides information to ensure that the financial statements show a true and fair view?

shareholders

tax consultants

financial Institutions

directors of the company

NEW QUESTION 39
Generally accepted accounting practice recognises revenue when

goods are produced.

customers order goods.

cash is received for the goods.

goods are dispatched to the customer.

NEW QUESTION 40
Published financial statements are regulated by

rules to ensure the provision of consistent financial information to investors.

International Financial Reporting Standards to ensure the provision of useful financial information to shareholders.

accounting and legal rules to ensure the provision of relevant and reliable financial information to shareholders.

shareholders who specify the framework for the provision of consistent and comparable financial information for decision-making.

NEW QUESTION 41
A decrease in assets is most likely to be recognised in the financial report as

a liability.

an expense.

revenue earned.

a change in equity.

NEW QUESTION 42
Which one of these is a key principle of good corporate governance?

effective communication with shareholders

restriction of shareholders’ rights in decision-making

effective management of the employees of the company

non-disclosure of directors’ agency relationship with the company

NEW QUESTION 43
A rules-based approach to standard setting

provides a broad framework for standard setting.

helps a standard-setting body to prioritise matters.

prescribes standards that attempt to cover all eventualities a business may face.

ensures there are no conflicts within accounting standards as each issue is handled just once.

NEW QUESTION 44
A company’s financial report is compliant with International Financial Reporting Standards. Where in the report would an investor find the amount of money received by the company for investment activities?

statement of cash flows

statement of financial position

statement of changes in equity

statement of comprehensive income

NEW QUESTION 45
According to the Australian Accounting Standards Board, which one of the following is a benefit of adopting International Financial Reporting Standards (IFRSs)?

to increase foreign investors’ understanding of local financial reports

to enable the national government to control activities of foreign multinationals

to make it easier for tax authorities to calculate taxes on investors’ overseas income

to become a resource for developing nations who can easily adopt IFRSs as a full set of standards

NEW QUESTION 46
The use of the principle of substance over form is found in which one of the following accounting treatments?

accounting for inventories

accounting for finance leases

accounting for non-current assets

accounting for property, plant and equipment

NEW QUESTION 47
Which one of the following examples would not represent an agency cost?

the cost of engaging an external auditor

the cost of employing an internal auditor

the cost of preparing a financial report for shareholders

the cost of preparing a cost-benefit report for a new project

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