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CPA Australia CPA Financial Accounting and Reporting Exam Sample Questions (Q76-Q81):
NEW QUESTION # 76
When business managers seek detailed information about the profitability or efficiency of different parts of their operations, they would find the most useful information in
- A. the annual financial report.
- B. the company's accounting policies.
- C. various management accounting reports.
- D. financial statements as specified by IAS 1 Presentation of Financial Statements.
Answer: C
NEW QUESTION # 77
Historical cost accounting provides financial information that is
- A. relevant but may not be reliable for decision making.
- B. reliable but may not be relevant for decision making.
- C. relevant and reliable for decision making.
- D. relevant for decision making.
Answer: B
NEW QUESTION # 78
Current cost accounting reflects an approach to capital maintenance based on maintaining which one of the following?
- A. financial capability of the business
- B. profitability of the business
- C. cost of assets in the business
- D. operating capability of the business
Answer: D
NEW QUESTION # 79
Which one of the following includes social reporting guidelines?
- A. International Accounting Standards (IAS)
- B. Global Reporting Initiative (GRI)
- C. Generally Accepted Accounting Principles (GAAP)
- D. International Financial Reporting Standards (IFRS)
Answer: B
NEW QUESTION # 80
The ability of a company to pay its bills when and as they fall due is a measure of
- A. economic value.
- B. the true and fair view of the financial report.
- C. solvency.
- D. compliance with the conceptual framework.
Answer: C
NEW QUESTION # 81
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