Question 1

Asset misappropriations have an effect on the liabilities and do also have an indirect effect on the equity account.

Options :

A : True

B : False

Answer: B

Question 2

Bid-rigging scheme occurs when:

Options :

A : an employee fraudulently assists a vendor in winning a contract through the competitive bidding process.

B : an employee does not assist a vendor in winning a contract through the competitive bidding process.

C : an employee once assists a vendor in winning a contract through a single competitive bidding process.

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

Bank statement are diligently reviewed to ensure that amounts and signature have not been altered, is an activity for:

Options :

A : Account analysis

B : Bank reconciliation

C : Check disbursement controls

D : Check tampering

Answer: C

Question 5

In physical tampering prevention technique, hidden images can be seen only when the check is held at an angle through:

Options :

A : High-resolution sprays

B : Holographic safety inks

C : Watermark backers

D : Chrome coloring

Answer: C

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