Easily To Pass New CPA Australia Financial-Accounting-and-Reporting Dumps with 100 Questions
Latest Financial-Accounting-and-Reporting Study Guides 2023 - With Test Engine PDF
NEW QUESTION # 22
A decision has been made to change the value of a major non-current asset, upon which depreciation is based, from original cost to a revalued amount. This results in a change in
- A. measurement basis and must be disclosed.
- B. accounting estimate and does not need to be disclosed.
- C. measurement basis and does not need to be disclosed.
- D. accounting estimate and must be disclosed.
Answer: A
NEW QUESTION # 23
Which one of the following statements differentiates semi-strong form efficiency from strong form efficiency in the context of the efficient market hypothesis?
- A. Semi-strong form efficiency reflects all past price movements whereas strong form efficiency reflects future share price movements.
- B. Semi-strong form efficiency addresses operational efficiency whereas strong form efficiency aims to address allocative efficiency.
- C. Semi-strong form efficiency does not reflect all publicly available information whereas strong form efficiency does incorporate all publicly available information.
- D. Semi-strong form efficiency does not reflect knowledge whereas strong form efficiency considers knowledge in addition to publicly available information and past price movements.
Answer: D
NEW QUESTION # 24
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
Answer: D
NEW QUESTION # 25
Which one of the following bodies makes accounting standards in Australia?
- A. AASB
- B. FRC
- C. IASB
- D. ASIC
Answer: A
NEW QUESTION # 26
In the context of a regulatory framework, a principles-based system
- A. is a rule-driven approach.
- B. removes any element of judgement by providing clear requirements.
- C. provides a theoretical basis with broad terms of reference.
- D. attempts to cover specific eventualities.
Answer: C
NEW QUESTION # 27
X was influenced by G Co's audit report and dividend declaration, and decided to invest in the securities of the company. What should X be cautious about before investing in the shares of the company?
X should be aware that
- A. the auditor's report is influenced by the directors.
- B. a declaration of dividend is the ultimate measure of a company's profitability.
- C. the auditor's report refers to the company's prior year financials.
- D. the declaration of dividends assures high earnings per share.
Answer: C
NEW QUESTION # 28
Which one of the following is not an Australian Securities Exchange (ASX) principle of good corporate governance?
- A. Remunerate fairly and responsibly.
- B. Respect the rights of shareholders.
- C. Promote ethical and responsible decision-making.
- D. Safeguard the environment.
Answer: D
NEW QUESTION # 29
Financial markets have achieved operational efficiency when
- A. past records are used to predict the future prices of goods.
- B. the cost of transactions is a reflection of the actual cost incurred.
- C. the costs of financial transactions are kept as low as possible.
- D. the price of stocks and shares are available accurately and quickly.
Answer: C
NEW QUESTION # 30
Generally accepted accounting practice recognises revenue when
- A. customers order goods.
- B. goods are dispatched to the customer.
- C. goods are produced.
- D. cash is received for the goods.
Answer: B
NEW QUESTION # 31
In a strong efficient market, the finance manager will
- A. maximise the net present value of the firm's investments.
- B. develop strategies to disclose the company's profit or loss.
- C. employ analysts to determine the best time to issue shares.
- D. analyse historical data on takeover targets.
Answer: A
NEW QUESTION # 32
The concept of transparency in corporate governance means that listed companies should disclose
- A. material information that affects decisions.
- B. their future strategy.
- C. confidential issues relating to competitors.
- D. only mandatory information by management.
Answer: A
NEW QUESTION # 33
Financial information is reliable if it
I)prefers substance over legal form.
II)is neutral and without any material error.
III)is complete and has been made with prudence.
IV)is understandable to those with no knowledge of accounting.
- A. I, II and IV only
- B. I, II and III only
- C. II, III and IV only
- D. I, III and IV only
Answer: B
NEW QUESTION # 34
In a stock market that displays strong efficiency, share prices reflect all available
- A. public and inside information.
- B. public information.
- C. information about future expansion plans.
- D. information about past changes in share prices.
Answer: A
NEW QUESTION # 35
In individual countries, Generally Accepted Accounting Principles (GAAP) is primarily a combination of
- A. national company law and national accounting standards.
- B. national company law and local stock exchange requirements.
- C. company law, accounting standards, local stock exchange requirements and international accounting standards.
- D. national company law, national accounting standards and local stock exchange requirements.
Answer: D
NEW QUESTION # 36
To be relevant, financial information has to
I)be provided in a timely manner.
II)comply with the going concern assumption.
III)have predictive and/or confirmatory value.
IV)exclude computations that are difficult to understand.
- A. I and III only
- B. II and III only
- C. I and II only
- D. III and IV only
Answer: A
NEW QUESTION # 37
Which one of the following is an accurate definition of fair value of an asset?
- A. The amount yet to be written off over the remainder of the asset's useful life.
- B. The price for which an asset could be sold in an orderly transaction between market participants at the measurement date.
- C. The cost of replacing an asset with an identical item.
- D. The price for which an asset could be sold net of disposal costs.
Answer: B
NEW QUESTION # 38
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?
- A. current value
- B. fair value
- C. current purchasing power
- D. deprival value
Answer: D
NEW QUESTION # 39
Which one of the following countries has the view that Generally Accepted Accounting Principles (GAAP) refers to accounting practices which are regarded as permissible by the accounting profession?
- A. Canada
- B. United Kingdom
- C. United States of America
- D. Australia
Answer: B
NEW QUESTION # 40
The objective of the International Accounting Standards Board (IASB) is to
- A. provide strategic advice to the International Financial Reporting Standards Advisory Council.
- B. enforce International Financial Reporting Standards.
- C. oversee the standard setting process and International Financial Reporting Standards Advisory Council.
- D. set International Financial Reporting Standards.
Answer: D
NEW QUESTION # 41
Which one of these concepts suggests that stock prices react to new information almost instantly?
- A. bargaining power
- B. efficient market
- C. incentive substitution
- D. market power
Answer: B
NEW QUESTION # 42
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CPA Australia Financial-Accounting-and-Reporting (CPA Financial Accounting and Reporting) Exam is a comprehensive exam designed to test a candidate's knowledge and understanding of financial accounting and reporting principles. Financial-Accounting-and-Reporting exam is an essential requirement for those who wish to become a certified public accountant in Australia. It is also recognized internationally, making it a valuable credential for those who plan to work in the accounting field globally.
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