ACFE Exam CFE Topic 3 Question 35 Discussion

Actual exam question for ACFE's CFE exam

Question #: 35
Topic #: 3

[All CFE Questions]

Forced reconciliation of the account says:

Ato conceal shrinkage is to alter inventory record so that it matches the physical inventory count.

Bto conceal inventory is to alter shrinkage record so that it matches the physical inventory count.

Cto conceal shrinkage is to change the perpetual inventory record so that it matches the physical inventory count.

Dto conceal write-offs is to change the perpetual inventory record so that it matches the physical inventory count.

Show Suggested Answer

Suggested Answer: A

by Jade at Apr 19, 2023, 05:43 PM

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James

1 months ago

Forced reconciliation? Sounds like a job for the accounting Hulk! Anyway, I'll go with C since it directly mentions concealing shrinkage.

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Diego

1 days ago

User 1: Forced reconciliation is serious business.

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Cristal

1 months ago

Haha, this question is a real 'shrinkage' of my brain power! But in all seriousness, I think C is the correct answer.

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Leatha

1 months ago

I'm going with D on this one. Forced reconciliation is a way to hide write-offs and make the books look better than they really are.

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Aja

2 months ago

Option C seems the most accurate to me. Forced reconciliation is definitely about aligning the perpetual inventory records with the physical count, in order to conceal any shrinkage.

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Lajuana

10 days ago

I think option C is the right choice too. It's important to keep everything in line.

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Nu

16 days ago

Yeah, forced reconciliation is all about hiding any discrepancies in the inventory.

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Madelyn

18 days ago

I agree, option C makes the most sense. It's all about matching the records.

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Raylene

2 months ago

But altering the perpetual inventory record to match physical inventory count is a way to conceal shrinkage.

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Janey

2 months ago

I disagree, I believe the answer is A.

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Raylene

3 months ago

I think the answer is C.

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