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ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam - Topic 1 Question 116 Discussion

A variation between the physical inventory and the perpetual inventory totals is called:
C) Shrinkage
A) Altered inventory
B) Account receivable
D) Write-offs

ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam - Topic 1 Question 116 Discussion

Actual exam question for ACFE's CFE-Financial-Transactions-and-Fraud-Schemes exam
Question #: 116
Topic #: 1
[All CFE-Financial-Transactions-and-Fraud-Schemes Questions]

A variation between the physical inventory and the perpetual inventory totals is called:

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Suggested Answer: C

by Marva at Aug 13, 2025, 12:20 AM

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Nichelle
8 months ago
Nope, shrinkage can also include theft and damage.
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Thaddeus
9 months ago
Wait, isn't it just a mistake in counting?
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Gregoria
9 months ago
It's called shrinkage!
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Cecil
9 months ago
Really? I thought it was just about inventory errors.
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Novella
9 months ago
Totally agree, shrinkage is the right term.
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Oretha
9 months ago
I’m a bit confused; I thought write-offs were related to losses but not specifically to inventory differences.
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Vonda
10 months ago
I practiced a similar question where shrinkage was the answer, so I’m leaning towards that for this one.
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Yvette
10 months ago
I remember studying about inventory discrepancies, and I feel like "altered inventory" might be a trick option.
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Stephaine
10 months ago
I think the term for the difference between physical and perpetual inventory is shrinkage, but I'm not completely sure.
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Jeffrey
10 months ago
I've got a good feeling about "shrinkage" as the answer. That's the term that comes to mind when there's a discrepancy between the physical count and the perpetual records.
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Darrin
11 months ago
Wait, I'm not sure shrinkage is the right answer here. Let me re-read the question and think through the options again more slowly.
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Genevieve
11 months ago
Okay, I've got this. The variation between physical and perpetual inventory is called shrinkage. That's the term for inventory that is lost, damaged, or stolen.
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Maryln
11 months ago
Hmm, I'm a little unsure about the difference between these terms. I'll need to think through the definitions carefully to determine the right answer.
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Tracie
11 months ago
This seems like a straightforward question about inventory accounting. I'll review the key concepts around physical inventory and perpetual inventory to make sure I understand the difference.
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Ming
1 year ago
I'm pretty sure the answer is C. Shrinkage. That's the term for the difference between physical and perpetual inventory, right?
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Lindy
12 months ago
Yes, you are correct. Shrinkage is the term used for the variation between physical and perpetual inventory totals.
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Buddy
1 year ago
C) Shrinkage
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