Free CPA Australia Financial-Accounting-and-Reporting Exam Dumps Questions & Answers

The chairperson of XYZ Company is concerned about the readability of the annual financial report that is about to be published on its website. XYZ Company is obliged to comply with International Financial Reporting Standards, and the report contains all of the required financial statements, the auditor's report, corporate governance statements, declarations of accounting policy, explanatory notes and a section that addresses the company's corporate social responsibility program.
The chairperson is wondering whether the report can be condensed. The issue that is concerning the chairperson is known as

• A.  the agency costs of monitoring.
• B.  the costs of social responsibility reporting.
• C.  the cost of compliance.
• D.  information overload.

Restrictions on the scope of a specific accounting standard are stated in

• A.  the IASB's Conceptual Framework.
• B.  various Statements of Accounting Concepts (SACs) issued by the AASB.
• C.  that specific standard.
• D.  the explanatory materials provided by the AASB.

Venturer Ltd has received fees from venture capital activities and has engaged you as the accountant to prepare the financial report for 31 December 20X0. Unable to find a specific reference to venture capital fees in either the conceptual framework or the accounting standards, you establish the appropriate accounting treatment by

• A.  consulting with the International Accounting Standards Board.
• B.  using your professional judgment and referring to the conceptual framework's definitions and recognition criteria.
• C.  using your professional judgment and referring to generally accepted accounting principles and practice.
• D.  referring to the fundamental accounting assumptions and conventions.

Which one of the following statements is correct?

• A.  Current and non-current assets are shown as separate classifications in the statement of financial position.
• B.  Liabilities are future obligations that will cause outflow of resources embodying economic benefits.
• C.  Assets used for long-term operations are shown under working capital in the statement of financial position.
• D.  A statement of financial position explains the reasons for movement of assets and liabilities through the accounting period.

According to IASB's Conceptual Framework, an expense is a decrease in economic benefits in the form of
I.
outflows.
II.
decreases of assets.
III.
incurrences of liabilities.
IV.
contributions to equity holders.

• A.  I, III and IV only
• B.  I, II and III only
• C.  I, II and IV only
• D.  II, III and IV only