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ACFE Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam Sample Questions (Q212-Q217):

NEW QUESTION # 212
A voucher is:

A. a report that includes the purchase order that was send to the vendor, the vendor invoice listing the quality and quantity of items purchased, and the external receiving reports that verify the items have been sold.
B. a file that includes the purchase order that was send to the vendor, the vendor invoice listing the cost and quantity of items purchased, and the internal receiving reports that verify the purchased items have been delivered.
C. a figure that includes the sale order that was send to the dealer, the vendor invoice listing the cost and quantity of items sold, and the internal receiving reports that verify the purchased items have been delivered.
D. a mammogram that includes the purchase order that was send to the purchaser, the purchaser invoice listing the benefits and quantity of items purchased, and the internal receiving reports that verify the purchased items have been sold.

Answer: B

NEW QUESTION # 213
The price of an asset on which the asset is selling at on the open market in a transaction between a willing buyer and a wiling seller is called:

A. Fair value
B. material value
C. Absolute value
D. Cost value

Answer: A

NEW QUESTION # 214
Which of the following is TRUE regarding accrual-basis accounting?

A. Accrual-basis accounting is simpler to use than cash-basis accounting.
B. Expenses are recorded in the accounting system when they are paid.
C. The accrual-basis method focuses on tracking a company's current cash flow.
D. Revenues are generally recognized when goods are delivered to a customer.

Answer: D

Explanation:
Detailed Explanation:
* Rationale for Correct Answer: Under accrual-basis accounting, revenues are generally recognized when earned (often upon delivery of goods or services), not necessarily when cash is received.
Similarly, expenses are recorded when incurred, not when paid. This provides a more accurate picture of performance and financial position.
* Analysis of Incorrect Options:
* A - This describes cash-basis accounting, not accrual-basis.
* B - Accrual accounting is more complex, not simpler.
* C - Focuses on earned revenues and incurred expenses, not immediate cash flow.
* Key Concept: Accrual accounting matches revenues with expenses in the period they occur.
Reference: ACFE Manual, Accounting Concepts - Accrual vs. Cash-Basis Accounting.

NEW QUESTION # 215
How many accounts are affected in fraudulent accounting entries and therefore same number of categories on the financial statement?

A. None of above
B. One
C. More than two
D. At least two

Answer: B

NEW QUESTION # 216
Bid-rigging scheme occurs when:

A. an employee fraudulently assists a vendor in winning a contract through the competitive bidding process.
B. an employee once assists a vendor in winning a contract through a single competitive bidding process.
C. an employee does not assist a vendor in winning a contract through the competitive bidding process.
D. an employee once assists a vendor in winning a contract through a single competitive bidding process.

Answer: A

NEW QUESTION # 217
......

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ACFE Certified Fraud Examiner - Financial Transactions and Fraud Schemes Exam Sample Questions (Q212-Q217):

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