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CPA Australia CPA Financial Accounting and Reporting Sample Questions:
1. In relation to financial statements, the 'true and fair override' indicates that
A) departure is allowed from accounting standards under specific instances to show a fair presentation.
B) accounting standards must be complied with under all circumstances.
C) statements need not always be true and accurate.
D) the true and fair requirement need not be complied with by certain industries.
2. An agent is answerable under the contract to the agent's principal and must account for the resources of the agent's principal and the money the agent has gained working on the principal's behalf. In the context of agency, this definition describes an agent's
A) contract.
B) relationship.
C) fiduciary duty.
D) accountability.
3. Which one of these is a key principle of good corporate governance?
A) restriction of shareholders' rights in decision-making
B) effective management of the employees of the company
C) non-disclosure of directors' agency relationship with the company
D) effective communication with shareholders
4. Variations in the regulatory regime over financial reporting in different countries is attributable to a range of differences including
A) consumer laws, taxation requirements and the extent to which the country has adopted international financial reporting standards.
B) company structures, ownership, local culture and the level of development of the country.
C) the needs of investors, creditors, employees, lending institutions and taxation authorities.
D) the extent to which the country has adopted international financial reporting standards and the requirements of local securities exchange.
5. Which one of the following reports sets out how directors have run a company and if they implemented proper procedures to deal with matters like accountability, audits, directors' roles and responsibilities, internal controls and relations with shareholders?
A) corporate social responsibility report
B) chairman's statement
C) director's report
D) corporate governance statement
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: D |
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