Question 1

Revenue is recognized when it is:

Options :

A : Realized and Earned

B : Fictitious and Earned

C : Realized and Evidenced

D : All of the above

Answer: A

Question 2

Theft of incoming checks usually occurs when ________ is (are) in charge of opening the mail and recording the receipt of payments.

Options :

A : Single employee

B : Two employees

C : More then two employees

D : None of the above

Answer: A

Question 3

____________ is a summary of the account balances carried in a ledger.

Options :

A : Balance sheet

B : Income statement

C : Financial statement

D : General journal

Answer: C

Question 4

If the assets are intentionally purchased by the company but simply misappropriated by the fraudster, this is referring to as:

Options :

A : Inventory larceny scheme

B : Asset receiving scheme

C : Fraudulent purchase

D : Falsify shipping

Answer: A

Question 5

The seller's price to the buyer is not fixed or determinable when:

Options :

A : When the price is not contingent on some future events

B : The transaction includes an option to exchange the product for others

C : A service or membership fee is not subject predictable cancellation during the contract period.

D : Payment terms are not extended for a substantial period.

Answer: B

Free CFE-Financial-Transactions-and-Fraud-Schemes Mock Exam – Practice Online Confidently