Pass your actual test at first attempt with CPA Australia Financial-Accounting-and-Reporting training material
Last Updated: Aug 14, 2026
No. of Questions: 100 Questions & Answers with Testing Engine
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Impairment of Assets | 6% | - Impairment testing and recognition - Impairment indicators and recoverable amount |
| Topic 2: Role and Regulatory Framework of Financial Reporting | 15% | - Regulatory environment and standards setting - Business entities and reporting obligations - Conceptual framework and qualitative characteristics |
| Topic 3: Business Combinations and Group Accounting | 20% | - Consolidation principles and procedures - Business combinations and goodwill - Non-controlling interests |
| Topic 4: Revenue, Provisions and Liabilities | 14% | - Revenue from contracts with customers - Provisions, contingent liabilities and assets |
| Topic 5: Financial Instruments | 12% | - Recognition, derecognition and disclosure - Classification and measurement |
| Topic 6: Income Taxes | 18% | - Tax effects in financial statements - Current and deferred tax calculation |
| Topic 7: Presentation of Financial Statements | 15% | - Statement of cash flows and notes - Statement of financial position - Statement of profit or loss and OCI |
1. What is the difference between positive and normative accounting theories?
A) Normative accounting theory specifies the prediction rules for items.
B) Normative accounting theory explains what should occur instead of predicting what is expected to occur.
C) Positive accounting theory explains what should occur.
D) Normative accounting theory predicts what is expected to occur rather than explaining what should occur.
2. 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) historical cost
B) present value
C) realisable value
D) current cost
3. In relation to financial statements, the 'true and fair override' indicates that
A) statements need not always be true and accurate.
B) accounting standards must be complied with under all circumstances.
C) departure is allowed from accounting standards under specific instances to show a fair presentation.
D) the true and fair requirement need not be complied with by certain industries.
4. Which one of the following would be included in a statement of financial position?
A) proceeds from long term borrowings
B) cost of sales
C) finance costs
D) retained earnings
5. Which one of the following is an accurate definition of fair value of an asset?
A) The cost of replacing an asset with an identical item.
B) The price for which an asset could be sold in an orderly transaction between market participants at the measurement date.
C) The amount yet to be written off over the remainder of the asset's useful life.
D) The price for which an asset could be sold net of disposal costs.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: B |
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