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CPA Australia CPA Financial Accounting and Reporting Sample Questions:
1. 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?
A) realisable value
B) current cost
C) present value
D) historical cost
2. Which form of capital market efficiency exists when share prices on the stock market reflect all information whether public or not?
A) semi-strong form efficiency
B) allocative efficiency
C) information processing efficiency
D) strong form efficiency
3. Which one of the following parties provides information to ensure that the financial statements show a true and fair view?
A) tax consultants
B) shareholders
C) directors of the company
D) financial Institutions
4. Liquidity of a company is based on its ability to
A) meet short term commitments.
B) buy back shares.
C) meet long term commitments.
D) pay dividends to shareholders.
5. Which one of the following would be recognised in the statement of profit or loss and other comprehensive income?
A) inventory
B) prepayment of expenses
C) retained earnings
D) employee wages
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: D |
