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:

AAltered inventory

BAccount receivable

CShrinkage

DWrite-offs

Show Suggested Answer

Suggested Answer: C

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

Limited Time Offer

25%

Off

Get Premium CFE-Financial-Transactions-and-Fraud-Schemes Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Nichelle

2 months ago

Nope, shrinkage can also include theft and damage.

upvoted 0 times

...

Thaddeus

3 months ago

Wait, isn't it just a mistake in counting?

upvoted 0 times

...

Gregoria

3 months ago

It's called shrinkage!

upvoted 0 times

...

Cecil

3 months ago

Really? I thought it was just about inventory errors.

upvoted 0 times

...

Novella

3 months ago

Totally agree, shrinkage is the right term.

upvoted 0 times

...

Oretha

3 months ago

I’m a bit confused; I thought write-offs were related to losses but not specifically to inventory differences.

upvoted 0 times

...

Vonda

4 months ago

I practiced a similar question where shrinkage was the answer, so I’m leaning towards that for this one.

upvoted 0 times

...

Yvette

4 months ago

I remember studying about inventory discrepancies, and I feel like "altered inventory" might be a trick option.

upvoted 0 times

...

Stephaine

4 months ago

I think the term for the difference between physical and perpetual inventory is shrinkage, but I'm not completely sure.

upvoted 0 times

...

Jeffrey

4 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.

upvoted 0 times

...

Darrin

5 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.

upvoted 0 times

...

Genevieve

5 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.

upvoted 0 times

...

Maryln

5 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.

upvoted 0 times

...

Tracie

5 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.

upvoted 0 times

...

Ming

7 months ago

I'm pretty sure the answer is C. Shrinkage. That's the term for the difference between physical and perpetual inventory, right?

upvoted 0 times

Lindy

6 months ago

Yes, you are correct. Shrinkage is the term used for the variation between physical and perpetual inventory totals.

upvoted 0 times

...

Buddy

7 months ago

C) Shrinkage

upvoted 0 times

...