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ACFE- Financial Transactions & Fraud Schemes
questions with verified answers 2025 latest update
Mario, an employee of a person-to-person (P2P) payment company, has been
writing down the account numbers and passwords of customer accounts with the
intent of fraudulently using them to pay for items he purchases online. Mario is
engaging in:
A. Credit card transfer fraud
B. Electronic funds transfer fraud
C. Check fraud
D. None of the above - (answer)B. Electronic funds transfer fraud
See pages 1.1036 in the Fraud Examiner's Manual
The debt-to-equity ratio is computed by dividing current liabilities by total equity.
A. True B. False - (answer)False
Which of the following types of transactions is LEAST LIKELY to use a person-to-
person (P2P) payment system?
A. A person paying for an item on an online auction site
B. A person buying groceries at a supermarket
C. A person making an online donation to a charity
D. A person transferring money to a friend abroad - (answer)B. A person buying
groceries at a supermarket
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Credit card receipts, bank statements, and birthday cards can all provide
dumpster divers with useful information for committing an identity theft scheme.
A. True B. False - (answer)True
All the following can help prevent a computer from infection by malicious
software EXCEPT:
A. Updating with the latest security patches
B. Installing shareware into a system's root directory
C. Updating the operating system regularly
D. Using anti-malware software - (answer)B. Installing shareware into a system's
root directory
Which accounting principle requires corresponding expenses and revenue to be
recorded in the same accounting period?
A. Going concern
B. Faithful representation
C. Comparability
D. Matching - (answer)D. Matching
matching involves the simultaneous or combined recognition of revenues and
expenses that result directly and jointly from the same transactions or events
James is a purchaser for a large government entity. ABC Inc. tells James that if he
awards ABC at least $5 million in contracts over the next two years, then ABC will
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hire James at the end of the two years at twice his current salary. Because no
actual money changes hands, this could NOT be considered a bribery or
corruption scheme.
A. True B. False - (answer)false
The ____________ details how much profit (or loss) a company earned over a
particular period of time.
A. Income statement
B. Balance sheet
C. Statement of changes in owners' equity
D. Statement of cash flows - (answer)A. Income statement
Off-book sales of goods ALWAYS cause shrinkage.
A. True B. False - (answer)false
skimming will leave an inventory shortage and a corresponding rise in the cost of
goods sold
reduction in inventory without a corresponding reduction in the perpetual
inventory is known as shrinkage
See pages 1.316 in the Fraud Examiner's Manual
All the following measures are recommended to help mitigate the risk of billing
schemes EXCEPT:
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A. Providing objective compensation for purchasing staff
B. Implementing a hotline function
C. Separating the purchasing function from the payment function
D. Prohibiting competitive bidding - (answer)D. Prohibiting competitive bidding
prevention measures to mitigate risk of billing schemes
1. education and training
2. objective compensation
3. separate purchasing department
4. enforce competitive bidding -
A health care provider's practice of charging a comprehensive code, as well as one
or more component codes, by billing separately for subcomponents of a single
procedure is known as ______________.
A. Segregating
B. Unbundling
C. Overcoding
D. Subdividing - (answer)B. Unbundling
Frequent check deposits in round numbers or for the same amount and checks
written to individuals for large, even amounts might be indicators of check fraud.
A. True B. False - (answer)True
ACFE- Financial Transactions & Fraud Schemes
questions with verified answers 2025 latest update
Mario, an employee of a person-to-person (P2P) payment company, has been
writing down the account numbers and passwords of customer accounts with the
intent of fraudulently using them to pay for items he purchases online. Mario is
engaging in:
A. Credit card transfer fraud
B. Electronic funds transfer fraud
C. Check fraud
D. None of the above - (answer)B. Electronic funds transfer fraud
See pages 1.1036 in the Fraud Examiner's Manual
The debt-to-equity ratio is computed by dividing current liabilities by total equity.
A. True B. False - (answer)False
Which of the following types of transactions is LEAST LIKELY to use a person-to-
person (P2P) payment system?
A. A person paying for an item on an online auction site
B. A person buying groceries at a supermarket
C. A person making an online donation to a charity
D. A person transferring money to a friend abroad - (answer)B. A person buying
groceries at a supermarket
, 2
Credit card receipts, bank statements, and birthday cards can all provide
dumpster divers with useful information for committing an identity theft scheme.
A. True B. False - (answer)True
All the following can help prevent a computer from infection by malicious
software EXCEPT:
A. Updating with the latest security patches
B. Installing shareware into a system's root directory
C. Updating the operating system regularly
D. Using anti-malware software - (answer)B. Installing shareware into a system's
root directory
Which accounting principle requires corresponding expenses and revenue to be
recorded in the same accounting period?
A. Going concern
B. Faithful representation
C. Comparability
D. Matching - (answer)D. Matching
matching involves the simultaneous or combined recognition of revenues and
expenses that result directly and jointly from the same transactions or events
James is a purchaser for a large government entity. ABC Inc. tells James that if he
awards ABC at least $5 million in contracts over the next two years, then ABC will
, 3
hire James at the end of the two years at twice his current salary. Because no
actual money changes hands, this could NOT be considered a bribery or
corruption scheme.
A. True B. False - (answer)false
The ____________ details how much profit (or loss) a company earned over a
particular period of time.
A. Income statement
B. Balance sheet
C. Statement of changes in owners' equity
D. Statement of cash flows - (answer)A. Income statement
Off-book sales of goods ALWAYS cause shrinkage.
A. True B. False - (answer)false
skimming will leave an inventory shortage and a corresponding rise in the cost of
goods sold
reduction in inventory without a corresponding reduction in the perpetual
inventory is known as shrinkage
See pages 1.316 in the Fraud Examiner's Manual
All the following measures are recommended to help mitigate the risk of billing
schemes EXCEPT:
, 4
A. Providing objective compensation for purchasing staff
B. Implementing a hotline function
C. Separating the purchasing function from the payment function
D. Prohibiting competitive bidding - (answer)D. Prohibiting competitive bidding
prevention measures to mitigate risk of billing schemes
1. education and training
2. objective compensation
3. separate purchasing department
4. enforce competitive bidding -
A health care provider's practice of charging a comprehensive code, as well as one
or more component codes, by billing separately for subcomponents of a single
procedure is known as ______________.
A. Segregating
B. Unbundling
C. Overcoding
D. Subdividing - (answer)B. Unbundling
Frequent check deposits in round numbers or for the same amount and checks
written to individuals for large, even amounts might be indicators of check fraud.
A. True B. False - (answer)True
