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ACFE Certified Fraud Examiner -Fraud Schemes and Financial Crimes Sample Questions:

1. Which of the following statements is TRUE regarding cash-basis accounting?

A) Cash-basis accounting is more complex to use than accrual-basis accounting.
B) Revenues are generally recognized when services are provided to a customer.
C) Expenses are recorded in the same period as the revenues they help generate.
D) Revenues are recorded in the accounting system when money is received.

2. Which of the following reasons is an acceptable justification for departing from generally accepted accounting principles (GAAP)?

A) The expected costs of following GAAP exceed the expected benefits of compliance.
B) A departure from GAAP would make the company appear more profitable.
C) Reporting a transaction in a way that is compliant with GAAP would be significantly more expensive.
D) Applying a different accounting framework would increase the organization's ability to grow internationally.

3. Any expenses that are incurred but not paid by the end of the year are counted in our records of profit and loss, and are called:

A) Depreciations
B) Accruals
C) Expenses
D) Financial record

4. __________ is required if and when officers, executives, or other persons in trusted positions become subjects of a criminal indictment.

A) Disclosure
B) Resource diversion
C) Conflict of interest
D) Turnaround sale or flip

5. To reduce his tax bill, John adds fake deductions to his personal tax return. John is MOST LIKELY engaging in:

A) Tax avoidance
B) Tax misappropriation
C) Tax sheltering
D) Tax evasion

Solutions: