ACFE CFE-Financial-Transactions-and-Fraud-Schemes Practice Verified Answers - Pass Your Exams For Sure! [2021]
Valid Way To Pass Certified Fraud Examiner's CFE-Financial-Transactions-and-Fraud-Schemes Exam
NEW QUESTION 95
In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?
- A. Bid-rigging
- B. Bid solicitation
- C. Competitive bidding
- D. Kickbacks
Answer: C
NEW QUESTION 96
Which of the following is NOT the reason why senior management will overstate business statement?
- A. Trigger performance related compensation
- B. Comply with debit covenants
- C. Meet personal performance criteria
- D. Show a pattern of growth to support sale of a business
Answer: B
NEW QUESTION 97
The more power a person has over the bidding process, the more likely the person can influence the selection of a supplier.
- A. True
- B. False
Answer: A
NEW QUESTION 98
The excess credits (or debits) on the income statement are used to decrease (or increase) the equity account.
- A. False
- B. True
Answer: A
NEW QUESTION 99
Another way to eliminate competition in the solicitation phase of the selection process is to:
- A. Solicit bid from fictitious suppliers
- B. None of the above
- C. Solicit transaction from fictitious vendors
- D. Solicit bid-splitting from fictitious vendors
Answer: A
NEW QUESTION 100
Which counts sometimes can give rise to inventory theft detection?
- A. Perpetual inventory counts
- B. Concealment inventory counts
- C. None of the above
- D. Physical inventory counts
Answer: D
NEW QUESTION 101
Any expenses that are incurred but not paid by the end of the year are counted in our records of profit and loss, are called:
- A. Financial record
- B. Depreciations
- C. Accruals
- D. Expenses
Answer: C
NEW QUESTION 102
Asset misappropriations have an effect on the liabilities and do also have an indirect effect on the equity account.
- A. False
- B. True
Answer: A
NEW QUESTION 103
Which of the following is the criterion for bid solicitation?
- A. To withdraw low bids
- B. Allowing the purchaser to discuss possible employment with the contractor
- C. Containing false statements
- D. To falsify the bid log
Answer: B
NEW QUESTION 104
Collusion or bid-rigging between bidders is called
- A. Contract acceptance
- B. To withdraw low bids
- C. Bid solicitation
- D. Bribery receipt
Answer: A
NEW QUESTION 105
Financial statement fraud is committed by:
- A. All of the above
- B. Mid and lower level employees
- C. Organized criminals
- D. Senior Management
Answer: A
NEW QUESTION 106
Which of the following is the amount of money that would be realized upon the sale of the asset at some point in the future, less the costs associated with owing, operating and selling it?
- A. Going concern
- B. Cost
- C. Net realizable value
- D. Fair value
Answer: C
NEW QUESTION 107
Physical assets including _________ and ________ are the most commonly misappropriated noncash asset in our study.
- A. Inventory & Purchase
- B. Interest & Collusion
- C. Inventory & Equipment
- D. Sales & Equipment
Answer: C
NEW QUESTION 108
Which of the following is NOT standard of generally accepted accounting principles?
- A. Full disclosure
- B. Cost
- C. Quality control
- D. Conservatism
Answer: C
NEW QUESTION 109
The difference between assets and liabilities is called:
- A. Expense
- B. Revenue
- C. Equity
- D. Income statement
Answer: C
NEW QUESTION 110
The _______________ cost method of pricing would carry an asset's value on the financial statements as what it would currently cost, considering inflation.
Answer:
Explanation:
Price-level adjusted historical cost
NEW QUESTION 111
___________ and __________ are used to increase (or decrease) the equity account.
- A. Journal Entries & Credit
- B. None of all
- C. Journal Entries & Debit
- D. Journal Entries & transactions
Answer: D
NEW QUESTION 112
Which of the following is NOT the example of bribery prevention policies?
- A. Resource diversions
- B. Discounts
- C. Reporting gifts
- D. Business meetings
Answer: A
NEW QUESTION 113
Depreciation is especially applicable when companies try to overvalue their assets and net worth; the lower their depreciation expense, the higher the company's profits.
- A. True
- B. False
Answer: A
NEW QUESTION 114
Organizations that had external audits actually had higher median losses and longer lasting fraud schemes than those organizations that were not audited.
- A. True
- B. False
Answer: A
NEW QUESTION 115
Asset misappropriation schemes were the "middle children" of the study; they were more common than fraudulent statements and more costly than corruption.
- A. False
- B. True
Answer: A
NEW QUESTION 116
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