Free Financial-Accounting-and-Reporting Braindumps Download Updated on May 10, 2022 with 100 Questions [Q57-Q72]

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Free Financial-Accounting-and-Reporting Braindumps Download Updated on May 10, 2022 with 100 Questions

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

NO.57 In relation to financial statements, the ‘true and fair override’ indicates that

statements need not always be true and accurate.

accounting standards must be complied with under all circumstances.

the true and fair requirement need not be complied with by certain industries.

departure is allowed from accounting standards under specific instances to show a fair presentation.

NO.58 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.

NO.59 Which one of the following is not an Australian Securities Exchange (ASX) principle of good corporate governance?

Safeguard the environment.

Respect the rights of shareholders.

Remunerate fairly and responsibly.

Promote ethical and responsible decision-making.

NO.60 Which one of the following statements is correct?

Liabilities are future obligations that will cause outflow of resources embodying economic benefits.

Current and non-current assets are shown as separate classifications in the statement of financial position.

Assets used for long-term operations are shown under working capital in the statement of financial position.

A statement of financial position explains the reasons for movement of assets and liabilities through the accounting period.

NO.61 Which one of the following statements is correct about using judgement in the financial reporting process?

Accountants should not be allowed to use their own judgement.

A true and fair view cannot be assured if individual judgement is allowed.

Judgement can be allowed in the statement of comprehensive income but not in the statement of financial position.

Use of individual judgement is required to choose between alternative methods available within accounting standards.

NO.62 Liquidity of a company is based on its ability to

buy back shares.

meet long term commitments.

pay dividends to shareholders.

meet short term commitments.

NO.63 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).

NO.64 Which one of the following is not a function of the trustees of the International Financial Reporting Standards Foundation (IFRS Foundation)?

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

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

promoting the application of International Financial Reporting Standards (IFRSs)

providing suggestions on technical matters relating to accounting standards

NO.65 Which one of the following is an advantage of current purchasing power accounting?

It enables raw data to be just easily verifiable but not auditable.

It provides a stable monetary unit that values profit and capital.

It provides a clear use of indices which approximates the measurement of value.

It supposes that value of net assets clearly reflects general goods and services are bought once assets were released.

NO.66 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

NO.67 A company sold some old operating equipment from its factory. After depreciation was accounted for, a small gain on sale was recorded. According to the revised IAS 1 Presentation of Financial Statements, this transaction will be shown as a separate item ‘gain on sale of equipment’. This item will be shown in the statement of

cash flow.

financial position.

changes in equity.

comprehensive income.

NO.68 Which one of the following would be included in the statement of financial position?

depreciation

deferred tax

distribution costs

gains on property valuations

NO.69 Which one of the following is an objective of the International Federation of Accountants (IFAC)?

to provide advice on accounting standards to the OECD

to issue new international financial reporting standards (IFRS)

to establish high quality professional standards in accountancy

to provide direction to the Financial Accounting Standards Board (FASB)

NO.70 The chairperson of XYZ Company is concerned about the readability of the annual financial report that is about to be published on its website. XYZ Company is obliged to comply with International Financial Reporting Standards, and the report contains all of the required financial statements, the auditor’s report, corporate governance statements, declarations of accounting policy, explanatory notes and a section that addresses the company’s corporate social responsibility program.
The chairperson is wondering whether the report can be condensed. The issue that is concerning the chairperson is known as

information overload.

the cost of compliance.

the agency costs of monitoring.

the costs of social responsibility reporting.

NO.71 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

NO.72 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?

I and III only

I and IV only

II and III only

III and IV only

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Free Financial-Accounting-and-Reporting Braindumps Download Updated on May 10, 2022 with 100 Questions [Q57-Q72]

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