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CPA Australia Financial-Accounting-and-Reporting Practice Test Questions Answers

Exam Code: Financial-Accounting-and-Reporting (Updated 100 Q&As)
Exam Name: CPA Financial Accounting and Reporting Exam
Last Update: 07-Dec-2025
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Questions Include:

  • Single Choice: 100 Q&A's

  • Financial-Accounting-and-Reporting Overview

    Other CPA Australia Exams

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    Financial-Accounting-and-Reporting Questions and Answers

    Question # 1

    You assumed the role as the Chairperson of the Board of Directors of Daylight Ltd. As you start to write your first directors' report, which one of the following areas are you not required to include in your report? 

    A.

    Details of any dividends paid or proposed.

    B.

    Details regarding any significant changes to Daylight's state of affairs for the year that just ended.

    C.

    Details regarding accounting policies pursued by Daylight in preparation of its financial statements.

    D.

    Review of operations of Daylight during the year just ended and any likely developments in the future that may impact Daylight.

    Question # 2

    In a stock market that displays strong efficiency, share prices reflect all available

    A.

    public information.

    B.

    public and inside information.

    C.

    information about future expansion plans.

    D.

    information about past changes in share prices.

    Question # 3

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

    A.

    profit smoothing

    B.

    window dressing

    C.

    trading in derivatives

    D.

    aggressive earnings management

    Question # 4

    Which one of the following contributes to an efficient capital market?

    A.

    having stock markets in every country

    B.

    information about the stock market can be obtained cheaply

    C.

    stock markets ensuring that companies do not overcharge for their products

    D.

    stock markets being managed by directors of companies that are listed on the stock market

    Question # 5

    Which one of the following is not a function of the trustees of the International Financial Reporting Standards Foundation (IFRS Foundation)?

    A.

    ensuring the financing of the International Accounting Standards Board (IASB)

    B.

    appointing the members of the International Accounting Standards Board (IASB)

    C.

    promoting the application of International Financial Reporting Standards (IFRSs)

    D.

    providing suggestions on technical matters relating to accounting standards

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