CERTIFIED PUBLIC ACCOUNTANT {CPA} REAL EXAM 300
QUESTIONS AND CORRECT DETAILED ANSWERS 2025//ALL
YOU NEED T PASS YOUR CPA EXAM
What type of threat is most likely to arise when a client with a dominant and persistent personality
attempts to influence an accountant's professional judgment?
A. Advocacy
B. Familiarity
C. Self-interest
D. Intimidation - ANSWER-D. Intimidation
Which of the following statements regarding utilitarianism is correct?
A. Utilitarianism is a deontological theory focused on consequences.
B. The decision-maker focuses on the outcomes or consequences to themselves.
C. Utilitarianism is a version of egoism and is focused on the outcome of the decision, not the
intention.
D. Utilitarianism aims to maximise benefits to the greatest number of people both in the short and
long term. - ANSWER-D. Utilitarianism aims to maximise benefits to the greatest number of people
both in the short and long term.
Which of the following is most likely to lead to an effective code of ethics in a corporate
organisation?
A. When the unwritten code of ethics is effective in influencing behaviour.
B. The organisation's leadership team reflects management's personal values.
C. If the rules on ethical behaviour in the code of ethics are prescriptive and explicit.
D. When management behaviour is congruent with the principles of the corporate code of ethics. -
ANSWER-D. When management behaviour is congruent with the principles of the corporate code
of ethics
Professional independence is a subset of which of the following pairs of fundamental principles?
A. Integrity and due care
B. Integrity and objectivity
C. Integrity and professional competence
,D. Objectivity and professional behaviour - ANSWER-B. Integrity and objectivity
Which of the following statements is correct in regard to earnings management?
A. It occurs only when profit is low.
B. It is the result of professional judgment.
C. It is the practice of maximising earnings.
D. It represents the manipulation of reported earnings. - ANSWER-D. It represents the
manipulation of reported earnings.
Which of the following is not an impact that underpins corporate social responsibility?
A. Social.
B. Political.
C. Economic.
D. Environmental. - ANSWER-B. Political.
Which of the following is not likely to have a direct impact on environmental sustainability?
A. Laws prohibiting fracking.
B. The introduction of new carbon tax.
C. A repeat of the global financial crisis.
D. Restrictions on greenhouse gas emissions. - ANSWER-C. A repeat of the global financial crisis.
Which of the following is not a social sustainability issue?
A. Child labour.
B. Biodiversity.
C. Ethical trading.
D. Supply chain management. - ANSWER-Biodiversity is an environmental sustainability issue while
all other options are social sustainability issues.
Which of the following is not a CSR theory?
A. Rights theory.
B. Legitimacy theory.
,C. Stakeholder theory.
D. Enlightened self-interest. - ANSWER-CSR theories include enlightened self-interest, stakeholder
theory, legitimacy theory and institutional theory. Therefore, rights theory is incorrect.
Which of the following is not one of the elements of financial reporting?
A. Assets.
B. Liabilities.
C. Expenses.
D. Cash flows. - ANSWER-D. Cash flows.
Cash flows are reported but they are not an element. The elements are assets, liabilities, income
(revenues), expenses and equity.
A company looking to enter this renewable energy market as a competitor would look to manage this
strategic risk in which of the following ways?
A. Eliminate the risk at all costs.
B. Transfer the risk to another company.
C. Mitigate the risk through operational controls.
D. Decide whether the risk is within the boundaries of the company's risk appetite. - ANSWER-D.
Decide whether the risk is within the boundaries of the company's risk appetite.
Which of the following relating to discounting future liabilities is correct?
A. Discounting future cash flows is not aligned with the aims and objectives of sustainability
reporting.
B. Discounting distant future costs that are to be incurred increases the current liability that is to be
reported now.
C. Discounting costs highlights the savings of future generations due to present generations
accounting for the loss now.
D. Discounting social issues are done in terms of the accounting standards so there are no ethical
issues as the process is fair. - ANSWER-A. Discounting future cash flows is not aligned with the
aims and objectives of sustainability reporting.
Which of the following relating to CSR theories is correct?
A. Institutional theory is based on the shareholder concept.
, B. Social contract is the key concept of legitimacy theory.
C. The key concept of enlightened self-interest is stakeholder relations.
D. Stakeholder theory requires organisations to manage community perceptions to survive. -
ANSWER-B. Social contract is the key concept of legitimacy theory.
Where in the annual report would you expect to find mandatory social and environmental reporting?
A. The financial statements and the chairman's report.
B. Notes to the financial statements and directors' report.
C. Corporate governance information and the auditor's report.
D. The Directors' declaration and the Chief Executive Officer's report. - ANSWER-B. Notes to the
financial statements and directors' report.
In terms of the National Greenhouse and Energy Reporting Act, which of the following entities would
be required to register with the Clean Energy Regulator?
A. A facility that emitted 23.5kt of greenhouse gases.
B. A corporate that consumed 199TJ of energy.
C. A facility that produced 150TJ of energy.
D. A corporate that emitted 26Kt of greenhouse gases. - ANSWER-C. A facility that produced 150TJ
of energy.
Enlightened self-interest is most closely linked to which ethical theory?
A. Teleological
B. Utilitarianism
C. Deontological
D. Ethical egoism - ANSWER-D. Ethical egoism
Stakeholder theory was first outlined by Freeman over 30 years ago. It has two main arms or
branches.
Which of the following describes these two approaches?
A. Normative and positive
B. Managerial and normative
C. Managerial and enlightened
QUESTIONS AND CORRECT DETAILED ANSWERS 2025//ALL
YOU NEED T PASS YOUR CPA EXAM
What type of threat is most likely to arise when a client with a dominant and persistent personality
attempts to influence an accountant's professional judgment?
A. Advocacy
B. Familiarity
C. Self-interest
D. Intimidation - ANSWER-D. Intimidation
Which of the following statements regarding utilitarianism is correct?
A. Utilitarianism is a deontological theory focused on consequences.
B. The decision-maker focuses on the outcomes or consequences to themselves.
C. Utilitarianism is a version of egoism and is focused on the outcome of the decision, not the
intention.
D. Utilitarianism aims to maximise benefits to the greatest number of people both in the short and
long term. - ANSWER-D. Utilitarianism aims to maximise benefits to the greatest number of people
both in the short and long term.
Which of the following is most likely to lead to an effective code of ethics in a corporate
organisation?
A. When the unwritten code of ethics is effective in influencing behaviour.
B. The organisation's leadership team reflects management's personal values.
C. If the rules on ethical behaviour in the code of ethics are prescriptive and explicit.
D. When management behaviour is congruent with the principles of the corporate code of ethics. -
ANSWER-D. When management behaviour is congruent with the principles of the corporate code
of ethics
Professional independence is a subset of which of the following pairs of fundamental principles?
A. Integrity and due care
B. Integrity and objectivity
C. Integrity and professional competence
,D. Objectivity and professional behaviour - ANSWER-B. Integrity and objectivity
Which of the following statements is correct in regard to earnings management?
A. It occurs only when profit is low.
B. It is the result of professional judgment.
C. It is the practice of maximising earnings.
D. It represents the manipulation of reported earnings. - ANSWER-D. It represents the
manipulation of reported earnings.
Which of the following is not an impact that underpins corporate social responsibility?
A. Social.
B. Political.
C. Economic.
D. Environmental. - ANSWER-B. Political.
Which of the following is not likely to have a direct impact on environmental sustainability?
A. Laws prohibiting fracking.
B. The introduction of new carbon tax.
C. A repeat of the global financial crisis.
D. Restrictions on greenhouse gas emissions. - ANSWER-C. A repeat of the global financial crisis.
Which of the following is not a social sustainability issue?
A. Child labour.
B. Biodiversity.
C. Ethical trading.
D. Supply chain management. - ANSWER-Biodiversity is an environmental sustainability issue while
all other options are social sustainability issues.
Which of the following is not a CSR theory?
A. Rights theory.
B. Legitimacy theory.
,C. Stakeholder theory.
D. Enlightened self-interest. - ANSWER-CSR theories include enlightened self-interest, stakeholder
theory, legitimacy theory and institutional theory. Therefore, rights theory is incorrect.
Which of the following is not one of the elements of financial reporting?
A. Assets.
B. Liabilities.
C. Expenses.
D. Cash flows. - ANSWER-D. Cash flows.
Cash flows are reported but they are not an element. The elements are assets, liabilities, income
(revenues), expenses and equity.
A company looking to enter this renewable energy market as a competitor would look to manage this
strategic risk in which of the following ways?
A. Eliminate the risk at all costs.
B. Transfer the risk to another company.
C. Mitigate the risk through operational controls.
D. Decide whether the risk is within the boundaries of the company's risk appetite. - ANSWER-D.
Decide whether the risk is within the boundaries of the company's risk appetite.
Which of the following relating to discounting future liabilities is correct?
A. Discounting future cash flows is not aligned with the aims and objectives of sustainability
reporting.
B. Discounting distant future costs that are to be incurred increases the current liability that is to be
reported now.
C. Discounting costs highlights the savings of future generations due to present generations
accounting for the loss now.
D. Discounting social issues are done in terms of the accounting standards so there are no ethical
issues as the process is fair. - ANSWER-A. Discounting future cash flows is not aligned with the
aims and objectives of sustainability reporting.
Which of the following relating to CSR theories is correct?
A. Institutional theory is based on the shareholder concept.
, B. Social contract is the key concept of legitimacy theory.
C. The key concept of enlightened self-interest is stakeholder relations.
D. Stakeholder theory requires organisations to manage community perceptions to survive. -
ANSWER-B. Social contract is the key concept of legitimacy theory.
Where in the annual report would you expect to find mandatory social and environmental reporting?
A. The financial statements and the chairman's report.
B. Notes to the financial statements and directors' report.
C. Corporate governance information and the auditor's report.
D. The Directors' declaration and the Chief Executive Officer's report. - ANSWER-B. Notes to the
financial statements and directors' report.
In terms of the National Greenhouse and Energy Reporting Act, which of the following entities would
be required to register with the Clean Energy Regulator?
A. A facility that emitted 23.5kt of greenhouse gases.
B. A corporate that consumed 199TJ of energy.
C. A facility that produced 150TJ of energy.
D. A corporate that emitted 26Kt of greenhouse gases. - ANSWER-C. A facility that produced 150TJ
of energy.
Enlightened self-interest is most closely linked to which ethical theory?
A. Teleological
B. Utilitarianism
C. Deontological
D. Ethical egoism - ANSWER-D. Ethical egoism
Stakeholder theory was first outlined by Freeman over 30 years ago. It has two main arms or
branches.
Which of the following describes these two approaches?
A. Normative and positive
B. Managerial and normative
C. Managerial and enlightened
