Pass the CPA Australia Certification Financial-Accounting-and-Reporting Questions and answers with ExamsMirror

The two fundamental qualitative characteristics of the financial information are

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.

Which one of the following is a benefit of developing financial reporting standards using a conceptual framework?

Which one of the following is not a function of the trustees of the International Financial Reporting Standards Foundation (IFRS Foundation)?

Investors use the audited financial statements of a company to

 I)evaluate the company's current return on assets

II)predict the company's market conditions for future years.

III)predict the company's market conditions for future years.

IV)make a judgement on the liquidity and solvency of the company.

The accounting policies used by companies must result in financial reports that are

Which of the following statements are correct in the context of accounting concepts and principles?

 I)The going concern assumption requires that assets be carried at their cost values.

II)Prudence allows the creation of contingency reserves and more generous provisions.

III)Financial information is considered complete even if it excludes non-material information.

IV)Understandability does not require complex information to be excluded from financial reports.

Which one of the following examples would not represent an agency cost?

Which one of the following would be recognised in the statement of profit or loss and other comprehensive income?

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?