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Updated: Sep 04, 2026
No. of Questions: 100 Questions & Answers with Testing Engine
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| Certification Vendor: | CPA Australia |
|---|---|
| Exam Name: | CPA Financial Accounting and Reporting |
| Exam Number: | Financial Accounting and Reporting (FR) |
| Exam Format: | Constructed Response / Case Study, Multiple Choice Questions |
| Related Certifications: | CPA |
| Passing Score: | Typically 65% (may vary by session) |
| Exam Price: | AUD 350–500 (varies by year and region) |
| Certificate Validity Period: | CPA designation is maintained through membership; exam itself does not expire once passed |
| Available Languages: | English |
| Exam Duration: | 180 minutes |
| Real Exam Qty: | Varies (combination of MCQs and constructed response tasks) |
| Recommended Training: | Becker CPA Review CPA Australia Learning Resources Kaplan CPA Review |
| Exam Registration: | CPA Australia CPA Program Registration |
| Sample Questions: | CPA Australia Financial-Accounting-and-Reporting Sample Questions |
| Exam Way: | Computer-based exam delivered via approved test centres or remote proctored options depending on region |
| Pre Condition: | Entry into the CPA Program requires completion of prerequisite accounting and business knowledge subjects or accredited equivalent qualifications. |
| Official Syllabus URL: | https://www.cpaaustralia.com.au/cpa-program |
| Section | Objectives |
|---|---|
| Liabilities and Equity | - Financial instruments and obligations
|
| Revenue Recognition | - Revenue from contracts with customers
|
| Financial Statement Analysis and Interpretation | - Analysis techniques
|
| Consolidated Financial Statements | - Group accounting
|
| Assets | - Asset recognition and measurement
|
| Financial Reporting Framework | - Conceptual framework for financial reporting
|
| Financial Statements | - Preparation and presentation
|
Question 1
Which one of the following is not an advantage of accounting regulation?
A. It instils public confidence in the accounting system employed in commerce and industry.
B. It provides flexibility in the way accounting information is presented to users.
C. It provides the required accounting information to all necessary shareholders.
D. It provides quality of information in and across financial statements.
Question 2
The IASB evaluates the merits of adding a potential item to its agenda mainly by reference to the needs of
A. suppliers.
B. tax agencies.
C. regulatory authorities.
D. investors.
Question 3
The accounting policies used by companies must result in financial reports that are
A. easy to read.
B. comparable with previous years' reports.
C. signed by the CEO or equivalent.
D. independently audited.
Question 4
Which one of the following statements regarding the IASB's Conceptual Framework for Financial Reporting is correct?
A. It specifies the concepts that underlie the preparation and presentation of only consolidated financial statements.
B. It specifies the concepts that underlie the preparation and presentation of special purpose financial statements.
C. It specifies the concepts that underlie the preparation and presentation of general purpose financial statements.
D. It overrides any local or international accounting standard.
Question 5
Liquidity of a company is based on its ability to
A. buy back shares.
B. meet short term commitments.
C. meet long term commitments.
D. pay dividends to shareholders.
Solutions:
| Question 1 Answer: B | Question 2 Answer: D | Question 3 Answer: B | Question 4 Answer: C | Question 5 Answer: B |
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